So for those looking to park some money in the sector, Abacus Storage King Ltd (ASX: ASK) is pretty much the only option at the moment.

The company delivered its first half results this week and we've had a look at what the analysts are saying following that event.

But first let's have a look at the results.

Solid set of numbers

Abacus on Monday said that it had a "solid" first half, "with embedded growth upside".

The company delivered a statutory profit of $71.1 million, up 4.8% on the same half the previous year, and will pay an interim dividend of 3.1 cents per share, equal to that paid for the same period last year.

The company's occupancy rate was 90.5%, down 20 basis points, while gearing of 31.9% was within the target range of 25-40%.

The company also reaffirmed its guidance for full year distributions of 6.2 cents per share.

On the outlook, managing director Steven Sewell said it was looking positive.

He added:

HY26 demonstrates the resilience of the business model and the strength of the operating platform, which is becoming stronger as we continue to advance our use and understanding of the revenue management system. As we continue to evaluate a potential internalisation of management, our focus remains on disciplined execution, strategic growth and operational excellence.

What do the brokers think?

The analysts at Bell Potter and Shaw and Partners both had a look at the result, and each are predicting some modest share price upside.

Bell Potter has a buy rating on the shares and a price target of $1.70 compared with $1.53 currently.

They added that further growth should be on the cards:

We continue to like ASK on a sector relative basis as the sole way to gain exposure to Australian self-storage and, per our recent initiation, there continues to be a disconnect between listed-market storage valuations and private markets. As Australia's self-storage sector continues to mature and institutionalise we expect to see further valuation growth. We acknowledge the near term cost challenges impact ASK but are equally conscious of the multiple upside catalysts and pronounced valuation disconnect of this vehicle.

Shaw and Partners has a hold rating on the shares and price target of $1.65.

They said the business "remains vibrant" and the company had plenty of capacity for acquisitions and developments given its gearing ratio.

They added that there could be a modest uplift to the valuation should the company go ahead with internalising its management vehicle, Abacus Group (ASX: ABG).

The post Is Abacus Storage King a buy, sell or hold after its first half results? appeared first on The Motley Fool Australia.

As earnings results continue to roll in, investors react which can lead to significant share price swings. 

Both of these ASX All Ordinaries (ASX: XAO) shares saw positive movement yesterday following their results. 

Here's what the companies reported. 

Results overview

Abacus Storage King is an ASX REIT and fully integrated owner and operator of 128 operating self-storage facilities and 21 future-self-storage development sites across Australia and New Zealand.

It released HY26 Results yesterday which included:

• Statutory profit of $71.1 million, up 4.8% on HY25
• Funds from Operations (FFO) of $41.0 million, down 5.3% on HY25
• Net Tangible Assets (NTA) of $1.76 per security, up 1.1% on FY25
• Distribution per security unchanged at 3.10 cents. 

Its share price climbed 2.3% higher on the back of these results. 

Another ASX All Ords stock that reported yesterday was New Hope Corp. 

It is a low-cost thermal coal producer, through its primary operations in New South Wales and Queensland. 

It released Q2 FY26 earnings which included: 

• Group Run of Mine (ROM) coal production: 4.1 million tonnes, up 4.8% from last quarter
• Coal sales: 2.9 million tonnes, up 8.2% from last quarter
• Average realised sales price: $139.0 per tonne, up from $136.6 per tonne
• Underlying EBITDA: $106.9 million for the quarter, and $214.8 million for the first half FY26. 

Its share price rose just over 1% following this announcement. 

One buy and one sell from Bell Potter

Following the results, Bell Potter released fresh analysis on both companies. 

It retained its buy recommendation on Abacus Storage shares on a sector relative basis. 

This was along with a price target of $1.70. 

This indicates an upside of approximately 9.7% from yesterday's closing price of $1.55. 

We continue to like ASK on a sector relative basis as the sole way to gain exposure to Australian self-storage and, per our recent initiation, there continues to be a disconnect between listed-market storage valuations (ASK now -12% to NTA) and private markets (Brookfield / GIC take-private bid for NSR at +9% premium).

Meanwhile, Bell Potter is bearish on New Hope shares. 

The broker has a sell recommendation, along with an updated price target of $4.10. 

This indicates a downside of 14%. 

We move to a sell recommendation following recent share price strength and a subdued thermal coal price outlook. NHC's low-cost operations will continue to underpin margins through the coal price cycle, funding capital expenditure commitments and supporting shareholder returns.

The post Broker weighs in on two ASX All Ords shares following earnings results appeared first on The Motley Fool Australia.

What did Abacus Storage King report?

• Statutory profit of $71.1 million, up 4.8% on HY25
• Funds from Operations (FFO) of $41.0 million, down 5.3% on HY25
• Net Tangible Assets (NTA) of $1.76 per security, up 1.1% on FY25
• Distribution per security unchanged at 3.10 cents
• Occupancy stable at 90.5%, down 0.2 percentage points on HY25
• Gearing at 31.9%, within target range; over $500 million in funding capacity

What else do investors need to know?

Abacus Storage King continued to expand in HY26, investing $58.1 million into acquisitions and developments and adding more than 15,000 square metres of new net lettable area to its portfolio. Notably, the company has rolled out its proprietary revenue management system across its entire established portfolio, driving dynamic pricing and helping maintain sector-leading operating metrics.

The board is currently exploring the internalisation of Abacus Storage King's management structure, which it believes could support greater efficiency and growth. These discussions are still at an early stage, and no outcome is guaranteed.

What did Abacus Storage King management say?

Chief Financial Officer Evan Goodridge said:

We were pleased to report continued RevPAM and valuation growth across all Australian regions, driven by the Group's leading locations and brand. ASK remains well placed to deliver sustainable long-term growth as we continue to deliver operating strength that has underpinned the business achieving sufficient scale to consider internalising the management structure.

What's next for Abacus Storage King?

Looking ahead, management reaffirmed its full-year distribution guidance of 6.20 cents per security, with 25% to be paid as a fully franked dividend and targeting a payout ratio of 90% to 100% of FFO. The company is confident in its balance sheet strength and development pipeline, which includes plans for 18 new stores and further expansion across Australia.

Management says its focus remains on delivering operational excellence and strategic growth, while continuing to evaluate the potential management internalisation. The revenue management system is expected to drive margin expansion over the medium term.

Abacus Storage King share price snapshot

Over the past 12 months, Abacus Storage King shares have risen 22%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Abacus Storage King posts profit growth, reaffirms outlook for 2026 appeared first on The Motley Fool Australia.

What did Abacus Storage King report?

• The Board is considering internalising ASK's management functions
• A Board sub-committee of independent directors has been formed
• Discussions between ASK and Abacus Group (ASX:ABG) have commenced
• Steven Sewell to remain MD of Abacus Group if internalisation proceeds
• Nikki Lawson slated to be CEO of Abacus Storage King if the deal is completed

What else do investors need to know?

Abacus Storage King emphasised that these discussions are at an early stage, and there is no guarantee that an internalisation transaction will proceed. Securityholders do not need to take any action for now.

To ensure the process is independent and transparent, the sub-committee of independent directors has appointed Macquarie Capital (Australia) Limited as its financial adviser and King & Wood Mallesons as legal adviser. The company has also committed to keep the market updated according to continuous disclosure requirements.

What's next for Abacus Storage King?

The possible internalisation of management marks a significant potential shift in how Abacus Storage King is run. If the process goes ahead, it could lead to greater alignment between management and security holders, subject to final agreement and regulatory approval.

For now, investors will have to wait for any material developments, as ASK has committed to updating the market as discussions progress.

Abacus Storage King share price snapshot

Over the past 12 months, Abacus Storage Kin shares have risen 35%, outperforming the S&P/ASX 200 Index (ASX: XJO) which as risen 6% over the same period.

View Original Announcement

The post Abacus Storage King weighs management internalisation: What investors need to know appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set for a poor start to the week following a disappointing finish to the last one on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 60 points or 0.7% lower. In the United States, the Dow Jones was down 0.35%, the S&P 500 fell 0.45%, and the Nasdaq tumbled 0.95%.

Oil prices ease

It could be a subdued start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices fell on Friday night. According to Bloomberg, the WTI crude oil price was down 0.3% to US$65.21 a barrel and the Brent crude oil price was down 0.4% to US$69.32 a barrel. Iran tensions gave oil prices a boost.

Buy ASK shares

Analysts at Bell Potter think investors should be buying Abacus Storage King (ASX: ASK) shares. Its analysts have initiated coverage on the self-storage company with a buy rating and $1.70 price target. It said: "Our investment case is predicated on a fundamental valuation disconnect between where ASK is trading (6.1% market implied cap rate, -13% discount to FY25 NTA, -20% to BPe FY26e NTA) and where storage assets/portfolios are clearing in the private market, with ASK-comparable assets transacting at-or-below 5% cap rates."

Gold price crashes

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a tough start to the week after the gold price crashed on Friday night. According to CNBC, the gold futures price was down 8.25% to US$4,879.6 an ounce. Traders were selling gold and silver (down 25%) after Donald Trump picked his next US Federal Reserve chief. The nomination removed Fed independence fears.

Rio Tinto update

The Rio Tinto Ltd (ASX: RIO) share price will be one to watch on Monday. That's because the mining giant and Aluminum Corporation of China have announced a definitive agreement to acquire Votorantim's controlling shareholding in Companhia Brasileira de Alumínio. It is a vertically integrated low-carbon aluminium business in Brazil, supported by a 1.6 GW portfolio of renewable power generation assets. Management notes that the transaction will leverage Rio Tinto and Aluminum Corporation of China's deep and complementary expertise across the aluminium value chain to unlock the next phase of growth at Companhia Brasileira de Alumínio.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

That's because Bell Potter has just named a number of ASX real estate stocks as buys.

Here's what it is recommending to clients:

Abacus Storage King (ASX: ASK)

Bell Potter has initiated coverage on this storage company's shares with a buy rating and $1.70 price target. This implies potential upside of approximately 10% for investors from current levels. In addition, the broker is expecting a 4.1% dividend yield in FY 2026.

Commenting on its initiation at buy, the broker said:

We initiate coverage of ASK with a Buy recommendation and a $1.70 target price. We forecast FY26e DPU of 6.2c (in line with guidance, VA consensus) and a 3yr EPS CAGR of +3.8%. While near term EPS growth is modest, the investment case is anchored in NTA compounding and convergence of listed market pricing toward private-market cap rates, with expected +8.2% 3yr NTA growth CAGR providing a clear benchmark for share price performance over time.

Centuria Industrial REIT (ASX: CIP)

Another ASX real estate stock that Bell Potter is bullish on is Centuria Industrial REIT.

Bell Potter has a buy rating and $3.75 price target on its shares. This suggests that upside of 15% is possible for investors between now and this time next year. In addition, a 5.1% dividend yield is expected in FY 2026.

Although its shares have outperformed recently, the broker notes that they are still trading at a discount to peers. It said:

Stock has outperformed +7% vs. +0% XPJ last 6m, but still trades at a -15% discount to NTA within a desirable real estate sub-sector where we see asset value upside.

DigiCo Infrastructure REIT (ASX: DGT)

Finally, this data centre operator could be an ASX real estate stock to buy according to Bell Potter.

This morning, the broker has upgraded its shares to a buy rating with a $3.25 price target. This implies potential upside of 25% for investors over the next 12 months. Bell Potter also expects a 4.6% dividend yield in FY 2026, bringing the total potential return to almost 30%.

The broker highlights that its shares have been underperforming materially over the past six months. It thinks this is a buying opportunity, it said:

Stock has been a key underperformer across the REIT sector last 6m (-17% vs. -3% XPJ), but yet there is now more certainty on leasing / FFO in FY26+ post guidance update. Addressing high gearing and delivering milestones are catalysts for re-rating.

The post Broker names 3 ASX real estate stocks to buy appeared first on The Motley Fool Australia.

We all only have so much time to work for earnings. It'd be beneficial to have a portfolio of shares paying a growing source of passive income to our bank accounts that we don't have to actively work for ourselves.

How much of a second income could a $20,000 investment pay? That entirely depends on the dividend yield.

For example, if someone's portfolio had a 5% dividend yield, then $20,000 would generate $1,000 of annual income.

That's just the first year, though.

If the payout grew at a compound annual growth rate (CAGR) of 7.5% for the foreseeable future, it would grow into $1,436 of annual income after five years and $2,061 after ten years.

That sounds good, right?

The next question is what to invest in.

Many of the most popular ASX-listed exchange-traded funds (ETFs) aren't known for having good dividend yields. I'll run through some compelling options.

Portfolio investments

When we think about investing in a particular company, like BHP Group Ltd (ASX: BHP), that money is allocated to just one business.

Wouldn't it be great if we could put our money into an investment and it's already diversified instantly?

There are some investments that can provide a pleasing mixture of both a good dividend yield and capital growth. I'm thinking of investment businesses like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), MFF Capital Investments Ltd (ASX: MFF), and Future Generation Australia Ltd (ASX: FGX), which have a good long-term record of payout growth. I think these are great options for a second income.

I'll also point out a couple of impressive actively-managed ETFs that target a dividend yield for investors and have strong long-term portfolio performance, such as WCM Quality Global Growth Fund (ASX: WCMQ) and Montgomery Global Equities Fund (ASX: MOGL).

Companies

There are a number of companies on the ASX that derive their earnings from operations.

I'd only focus on businesses that have an attractive long-term future and that have a history of growing their payouts and offer a good dividend yield today.

Some of the most appealing ASX dividend shares, in my opinion, are Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Medibank Private Ltd (ASX: MPL), Pinnacle Investment Management Group Ltd (ASX: PNI), Shaver Shop Group Ltd (ASX: SSG), and APA Group (ASX: APA).

Real estate investment trusts

The final area of investments that could unlock a pleasing second income is real estate investment trusts (REITs) – these are businesses that own significant commercial real estate.

There is a wide variety of REITs that Aussies can buy, including industrial, shopping centres, farms, self-storage, office, social, and healthcare.

Investors can benefit from the rental profits as well as the long-term appreciation of land prices. Some of my favourite REITs for income and capital growth are Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW), Rural Funds Group (ASX: RFF), and Abacus Storage King (ASX: ASK).

The post $20,000 in excess savings? Here's how to try and turn that into a second income in 2026 appeared first on The Motley Fool Australia.

What did Abacus Storage King report?

• Declared a fully paid interim distribution of 3.1 cents per security for the half-year to 31 December 2025
• Payment will be partially franked, with 25% franked and 75% unfranked
• Key dates: ex‑date on 30 December 2025, record date on 31 December 2025
• Payment scheduled for 27 February 2026
• Applies to holders of fully paid ordinary/stapled securities (ASX:ASK)

What else do investors need to know?

Abacus Storage King's latest distribution covers the second half of 2025, maintaining its commitment to regular income returns for securityholders. With 25% of the payout franked at a 30% corporate tax rate, investors seeking tax-effective income may find this distribution appealing.

There is no dividend reinvestment plan (DRP) offered for this distribution. The company has not announced any changes to its tax component details, and there is no conduit foreign income attached to this payment.

What's next for Abacus Storage King?

Investors can expect payment of the 3.1 cent interim distribution on 27 February 2026, while the record date is set for the end of December. Looking ahead, Abacus Storage King continues to focus on delivering consistent distributions, reflecting its income-oriented investment strategy.

Future updates, including further results or guidance, may provide more insight on the group's earnings profile and payout outlook for the upcoming periods.

Abacus Storage King share price snapshot

Over the past 12 months, Abacus Storage King shares have risen 29%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 2% over the same period.

View Original Announcement

The post Abacus Storage King declares partially franked December 2025 dividend appeared first on The Motley Fool Australia.

Abacus is a player in the booming self-storage industry in Australia and has grown to be worth $1.83 billion after listing on the ASX in August 2023.

Takeover in the wings

One of the company's key competitors, and a shareholder in Abacus itself, is National Storage REIT (ASX: NSR), which on Wednesday asked that its shares be placed in a trading halt.

NSR, as reported by The Australian, is currently fielding a potential takeover offer purportedly from Brookfield and GIC, and has asked that its shares be suspended while negotiations continue.

It's my bet that traders are looking at the potential NSR deal and wondering whether Abacus might be wrapped into a larger play either now or down the track.

Abacus in predators' rights

Abacus has this year been itself the target of a protracted takeover attempt by Ki Corporation and US-listed firm Public Storage (NYSE: PSA), with the $1.47 per security bid rejected in May.

Abacus said at the time that its net tangible asset value was $1.73 based on an independent valuation, and hence the consortium's bid was too low.

The consortium's bid was withdrawn in August, however, not before Ki Corporation ended up with control over 63.5% of the shares in Abacus.

In fact, three shareholders now control almost 95% of Abacus shares, with a company called Abacus Property Group holding 20.9% and Runway Technologies holding 10.2%.

Add to that NSR's shareholding of just under 5%, which it declared early this year, and you can account for nearly all of the Abacus shares in issue.

With major private equity players running the ruler over NSR, it stands to reason they might do the same for Abacus, and either launch a separate bid or look to take out both entities and combine them into one.

Any such deal could generate significant merger synergies.

Abacus shares were trading 10.4% higher after news of the NSR deal broke, to be changing hands for $1.54.

NSR, meanwhile, asked that its shares be placed in a trading halt pending an announcement "in relation to a potential control transaction for all of NSR's stapled securities''. The trading halt will remain in place until an announcement is made or until the start of trade on 28 November, the statement to the ASX said.

The post Why are this storage outfit's shares more than 10% higher today? I'll tell you my theory appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

Abacus Storage King (ASX: ASK)

The Abacus Storage King share price is up almost 6% to $1.56. This has been driven by news that the self-storage operator has received an improved takeover offer from the Ki Corporation and Public Storage (NYSE: PSA) consortium. A revised non-binding and indicative proposal of $1.65 cash per share has been tabled. This represents a 15% increase on its initial proposal. The company also notes that the offer would not be subject to a deduction for any declared ordinary course distributions.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up over 5% to $2.92. This morning, this high-flying counter drone technology company announced a major increase to its research and development capabilities. DroneShield will make a $13 million+ initial investment via a multi-year lease and fitout commitment into a brand new 3,000sqm production facility in Sydney's Alexandria. DroneShield's CEO, Oleg Vornik, said: "In response to rising threats and multiple wars taking place across the globe, Australia's allies are increasing investment in modern defence capabilities. We are stepping up to meet this demand by investing in state-of-the-art facilities here and abroad, and in sovereign Australian skills development to provide the most modern and effective counterdrone capabilities in the world. Our new facility in Alexandria will epitomise the value Australian engineering can bring to a changing geopolitical landscape."

Hansen Technologies Ltd (ASX: HSN)

The Hansen Technologies share price is up 12% to $5.34. This software company's shares are taking off today after it upgraded its earnings guidance for FY 2025. According to the release, thanks to a quicker than expected turnaround in the Powercloud business, as well as improved operating efficiencies and disciplined cost management, underlying EBITDA is forecast to be between $110 million and $112 million for the year. This is up from its previous guidance range of $92 million to $101 million.

Macquarie Technology Group Ltd (ASX: MAQ)

The Macquarie Technology share price is up 8% to $66.72. The catalyst for this has been news that the technology company has entered into a put and call option with a large, long established property investment and development company based in Sydney to purchase a large parcel of land for a new data centre campus. If everything goes to plan, Macquarie Technology intends to construct a new Sydney data centre campus in stages that is expected to deliver more than 150 MW of IT load.

The post Why Abacus Storage King, DroneShield, Hansen, and Macquarie Technology shares are charging higher appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Abacus Storage King (ASX: ASK)

The Abacus Storage King share price is up 19% to $1.38. This morning, this self-storage company revealed that it has received a takeover offer from a consortium made up of Ki Corporation Limited and NYSE-listed giant Public Storage (NYSE: PSA). An offer of $1.47 per share, less any declared distributions, has been tabled. This represents a 27% premium to where its shares finished last week. The company stated: "ASK has formed an independent board committee consisting of ASK's independent directors and it has commenced an assessment of the Indicative Proposal but has not at this stage formed any view on its merits."

Cettire Ltd (ASX: CTT)

The Cettire share price is up 3.5% to 64.7 cents. This is despite there being no news out of the online luxury products retailer. However, with its shares down by a third since this time last month and over 80% since this time last year, it is possible that bargain hunters are swooping in today. In addition, as one of the most shorted shares on the ASX, it is possible that some short sellers are buying back shares today in order to close their positions and lock in their gains.

Challenger Ltd (ASX: CGF)

The Challenger share price is up 7% to $5.92. Investors have been buying the annuities company's shares today following news that TAL Dai-ichi Life Australia has agreed to acquire a 15.1% minority interest in the company from MS&AD Insurance Group Holdings. TAL is paying 763 yen per Challenger share, which is the equivalent of approximately A$8.46 per share. That's a hefty 52.7% premium to Friday's closing price. Challenger's CEO, Nick Hamilton, said: "Dai-ichi Life is a global leader in life insurance and we look forward to building a relationship that will benefit both our customers and shareholders. We welcome their significant investment in our business and will explore future opportunities that support our strategic objectives."

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price is up almost 3% to $7.52. This may have been driven by news that China has expanded its use of critical minerals as a trade weapon with curbs on exports of rare earths. According to Bloomberg, this is part of its retaliation to US President Donald Trump's reciprocal tariffs on imported Chinese goods.

The post Why Abacus, Cettire, Challenger, and Lynas shares are charging higher today appeared first on The Motley Fool Australia.

In fact, Abacus Storage King (ASX: ASK) shares are rocketing higher today after the self-storage company received a big takeover offer after the market close on Friday.

At the time of writing, the ASX 300 stock is up 15% to $1.33.

ASX 300 stock receives takeover offer

According to the release, the company has received a conditional, non-binding indicative proposal from a consortium made up of Ki Corporation Limited and NYSE-listed self-storage giant Public Storage (NYSE: PSA).

The two parties are looking to acquire all outstanding securities of Abacus Storage King that they don't already own in a deal that would see investors receive $1.47 per share, less any declared distributions.

This bid represents a 27% premium to the ASX 300 stock's recent trading levels and has come at just the right time for investors, with most of the ASX is being dragged lower amid the global market meltdown.

If completed, Public Storage would end up owning roughly 50% of the company, with Ki taking the remaining half. But investors should be aware — while it is a big move, it is certainly not a done deal yet.

Conditions

The release notes that the proposal is highly conditional, with a long list of approvals still required.

These include regulatory approvals from FIRB and New Zealand's Overseas Investment Office, tax rulings from the ATO, and a six-week due diligence period before definitive transaction documents would be signed.

In addition, the ASX 300 stock's board must unanimously recommend the offer, which they haven't done yet. An independent expert will also need to confirm that the deal is in the best interests of minority shareholders.

For now, the company's board has formed a committee of independent directors to assess the proposal and has urged shareholders not to take any action just yet while it works through the details. It said:

ASK has formed an independent board committee consisting of ASK's independent directors and it has commenced an assessment of the Indicative Proposal but has not at this stage formed any view on its merits.

Still, in a sea of red, Abacus Storage King is shining bright on Monday — and for good reason. This potential deal highlights the appeal of real asset owners with strong cash flows, even amid broader market uncertainty.

The post Guess which ASX 300 stock is rocketing 15% on big takeover offer appeared first on The Motley Fool Australia.

First up, we have Abacus Storage King (ASX: ASK). Abacus Storage shares closed at $1.16 each yesterday, but are currently enjoying a 2.16% lift up to $1.18.

This move comes after the self-storage real estate investment trust (REIT) posted its latest half-year earnings this morning.

It's not hard to see why investors have gotten excited.

Over the half-year to 31 December 2024, Abacus Storage revealed that funds from operations had risen by 15.1% over the previous half-year to $43.3 million. Statutory profits came in at $67.8 million, which was a huge increase from the $400,000 reported last year.

This led to Abacus Storage announcing an interim dividend distribution of 3.3 cents per share, up 3.3% year-on-year. Like most dividend distributions from ASX REITs, this will come without any franking credits attached.

Another ASX 300 property share with earnings out today

Next, we have another REIT and ASX 300 property share to check out in Mirvac Group (ASX: MGR).

This diversified REIT is also enjoying a notable share price bump this Friday. Mirvac units closed at $2 each yesterday but are currently up a solid 4.75% at $2.10.

This move comes after Mirvac dropped its own set of results this morning. These results also covered the six months to 31 December 2024.

Mirvac revealed that its group earnings before interest and tax (EBIT) were $361 million for the half, down from $372 million in the prior corresponding period. Operating profits also took a hit, dropping from $252 million in the prior half to $236 million for this period.

Meanwhile, earnings per share (EPS) was reported at 6 cents, again down from the 6.4 cents in the prior half.

Net tangible assets per share stood at $2.31 on 31 December, down from $2.36 at the end of FY2024.

Despite this, Mirvac is keeping its interim dividend for 2025 steady at 4.5 cents per share. Although that matches last year's interim dividend from this ASX 300 property share, it's a drop from the final dividend of 6 cents that investors enjoyed back in August. Like Abacus' payout, this dividend will also come unfranked.

Foolish takeaway

The earnings results from these two ASX 300 property shares just go to show how earnings are more about expectations than results. Mirvac reported falling profits, yet its shares have gone up far more than those of Abacus, whose results were objectively better.

Earnings season continues next week, so stay tuned!

The post 2 ASX 300 property shares up big today appeared first on The Motley Fool Australia.

The All Ords enjoyed strong momentum in January, with the index lifting an impressive 4.38%.

Here are five ASX All Ords shares that brokers upgraded to a strong buy rating last month.

5 ASX All Ords shares elevated to 'strong buy' status

The consensus rating on these ASX All Ords shares from market analysts on the CommSec trading platform is a strong buy.

CSL Ltd (ASX: CSL)

Analysts upgraded their consensus rating on CSL shares to a strong buy on 29 January.

The CSL share price is $272.30, up 0.72% at the time of writing.

The market's largest healthcare share by market capitalisation has fallen 9.8% over the past 12 months.

Chalice Mining Limited (ASX: CHN)

Analysts upgraded their consensus rating on Chalice Mining to a strong buy on 23 January.

The Chalice Mining share price is currently $1.23, down 0.24%.

The ASX All Ords mining share is up 40% over the past 12 months.

Abacus Storage King (ASX: ASK)

Analysts upgraded their consensus rating on Abacus Storage shares on 16 January.

The ASX real estate investment trust (REIT) is trading at $1.15 on Thursday, up 1.32%.

Analysts say ASX REITs will benefit from the global trend of falling interest rates.

Top broker JPMorgan has an overweight rating on Abacus Storage King shares.

The ASX All Ords REIT share has risen by only 0.88% over the past 12 months.

Boss Energy Ltd (ASX: BOE)

Brokers upgraded ASX All Ords uranium share Boss Energy to a strong buy on 10 January.

This was despite plenty of short plays on the stock last month.

The upgraded rating came ahead of the company's quarterly update on 29 January, which led to a 16.5% spike in the Boss Energy share price over the last three trading days of the month.

Boss Energy shares rose by 36.2% in January — the strongest result of the ASX 200.

The Boss Energy share price is $3.38, down 0.29% today and down 44% over the past year.

Mesoblast Limited (ASX: MSB)

The No. 1 ASX All Ords share for price growth in 2024 received an upgraded consensus rating on 2 January.

This followed big news from Mesoblast in December.

The company announced that its flagship drug, Ryoncil, or remestemcel-L, had finally gained approval from the United States Food and Drug Administration after many years of trials.

Ryoncil is the first approved treatment for steroid-refractory acute graft versus host disease (SR-aGvHD) in children aged two months and older.

It is also the first mesenchymal stromal cell (MSC) therapy ever approved in the US.

The ASX All Ords biotech share is down 2.81% at $2.94 on Thursday.

Mesoblast shares have skyrocketed by 1,029% over the past 12 months.

The post 5 ASX All Ords shares upgraded to 'strong buy' consensus ratings appeared first on The Motley Fool Australia.

High or rising interest rates tend to hurt REITs because their debt becomes more expensive to service.

REITs usually have a fair bit of debt on their balance sheets to fund property purchases and developments.

Higher rates also make ASX REITs less appealing to income investors.

This is because investors can attain risk-free yields from bonds or term deposits at a similar rate of return instead.

But the tide is turning, with central banks in a range of nations, including the United States, Canada, England, the Euro Zone, and Sweden, reducing rates last year.

The Reserve Bank of Australia is expected to follow suit at some point in the first half of 2025.

This is why top broker JP Morgan says it's time to buy ASX REITs.

According to The Australian, the broker says interest rate cuts could lift earnings across the ASX REIT sector.

And as we all know, higher earnings have a direct impact on distributions (or dividends).

2025 dividend forecasts for ASX REITs

Let's take a look at the forecast 2025 dividend yields for the largest ASX REITs by market capitalisation.

For the purposes of this article, we'll focus on REITs with market capitalisations above $7 billion.

The following chart shows the consensus analysts' forecasts for annual distributions in 2025.

These forecasts have been published on the CommSec trading platform.

We compare these forecasts to the 2024 distributions and calculate the trailing and forecast dividend yields based on ASX REIT share prices at the time of writing.

These REITs are listed in order of market cap from largest to smallest in the group.

So, analysts expect GPT Group to pay the highest dividend yield among this group of ASX REITs in 2025.

Is it time to buy ASX REITs?

Many analysts are optimistic about ASX REITs for 2025.

Aaron Binsted, portfolio manager of Lazard's Australian equity income fund, says ASX REITs are likely to deliver better returns for income investors this year than bank shares.

As reported in the Australian Financial Review (AFR), Binsted points to Charter Hall Retail REIT (ASX: CQR) and Vicinity Centres as examples offering "modest growth but good yields of 5 to 6 per cent".

JPMorgan analyst Richard Jones said investors are showing new interest in ASX REITs beyond the sector's largest company, Goodman Group.

As this chart shows, Goodman Group has outperformed its peers listed above in terms of share price growth since interest rates began rising in May 2022.

This is mainly due to the artificial intelligence (AI) megatrend and Goodman's pivot into data centres.

There's been a mixed performance from other ASX REITs over the period.

James said investors currently see the ASX REIT sector as defensive amid expectations of lower earnings growth across the wider share market in 2025.

He comments:

REIT earnings are at an inflection point, having seen growth wiped out by rising debt costs over the past two years.

We expect sector earnings growth to turn positive this year and accelerate over the next two years, offering an attractive above-trend three-year EPS compound annual growth rate of 7.8 per cent or 4.4 per cent ex-GMG.

JPMorgan has an overweight rating on Vicinity Centres and Abacus Storage King (ASX: ASK).

Another broker, Citi, has buy ratings on Goodman, Stockland, Scentre, GPT Group, National Storage REIT (ASX: NSR), and Ingenia Communities Group (ASX: INA).

According to The Australian, CLSA has an overweight rating on ASX REITs.

Analysts Druce and Calvetti said:

We expect the residential sector to pick up again on rate cuts, after constant pressure on volumes and margins, from high construction costs, subcontractor delays and elevated interest costs.

Generally, we are more comfortable asset values have troughed. We see more devaluations in office, between 3 per cent to 5 per cent based on transactions in the market.

The post Which ASX REIT will pay the best dividend yield in 2025? appeared first on The Motley Fool Australia.

Real estate investment trusts (REITs) usually have a reasonably high level of debt on their balance sheets compared to other businesses. REITs typically fund some of their property investments with debt, so with interest rates now much higher than before, they're paying a lot more interest to lenders.

Higher interest rates are also a headwind for property valuations because they make the passive income returns offered by property seem less appealing compared to safe(r) investments like bonds and term deposits.

Share prices of ASX real estate shares like Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF) have fallen by large double-digit declines (in percentage terms) and are now trading at significant discounts to their net asset values (NAVs).

Some experts believe now is the right time to examine the sector for opportunities.

JPMorgan is excited about ASX real estate shares

According to reporting by The Australian, JPMorgan thinks investors should increase their exposure to Australian REITs because interest rate cuts could lift earnings across the sector.

The broker assigned an overweight (buy) rating to several property names, including Vicinity Centres (ASX: VCX) and Abacus Storage King (ASX: ASK).  

JPMorgan analyst Richard Janes noted that 2024 saw a strong performance for Goodman Group (ASX: GMG), but it's neutral on that business now. The broker said:

In 2025, we believe portfolio outperformance will require a broader set of stock exposures. REIT earnings are at an inflection point, having seen growth wiped out by rising debt costs over the past two years.

We expect sector earnings growth to turn positive this year and accelerate over the next two years, offering an attractive above-trend three-year EPS compound annual growth rate of 7.8 per cent or 4.4 per cent ex-GMG.

Citi is bullish, too

The Australian reported that broker Citi also thinks ASX real estate shares could be a good pick in the current environment.

Some of Citi's picks in the sector include Goodman, National Storage REIT (ASX: NSR), Ingenia Communities Group (ASX: INA), Stockland Corporation Ltd (ASX: SGP), Scentre Group (ASX: SCG) and GPT Group (ASX: GPT).

Explaining Citi's bullishness about the sector, Citi analyst Howard Penny said:

Our outlook remains particularly strong for high-growth sub-sectors such as data-centres, retail, self-storage and land lease, where structural operational momentum continues to deliver robust returns.

We expect declining financing costs will provide additional tailwinds, supporting earnings growth across the broader sector.

However, we foresee a slower recovery in Australian office markets, where elevated vacancy rates and persistent tenant incentives are likely to delay a meaningful shift in the demand-supply dynamics.

Overall, things are looking more positive for the ASX real estate share sector.

The post Should you buy ASX real estate shares before interest rates start to fall? appeared first on The Motley Fool Australia.

Some industries have been more impacted by high interest rates than others. Sometimes, amid that pain, there can be undervalued opportunities, and I believe several real estate investment trusts (REITs) are trading too cheaply. Especially considering an RBA interest rate cut could be just around the corner.

With that in mind, I think these two stocks are flying under the radar and might just be too cheap to ignore.

HomeCo Daily Needs REIT (ASX: HDN)

This REIT invests in subsectors like neighbourhood retail, large-format retail, and health and services.

It's also invested in an unlisted fund called Last Mile Logistics, which targets "core plus transition assets with upside via repositioning into essential last-mile real estate infrastructure." In other words, its tenants are important providers of various daily needs for Aussies.

The ASX dividend share has a strong rental portfolio, with an occupancy rate of more than 99%. It generated 4% comparable property net operating income in FY24 and expects to report funds from operations (FFO) – net rental profit – of 8.8 cents per security in FY25, up 2.3% year over year.

The ASX dividend share also expects to grow its distribution by 2.4% in FY25 to 8.5 cents per security. This translates into a forward distribution yield of 7.4% at the current HomeCo Daily Needs REIT share price of $1.15.

The HomeCo REIT reported its net tangible assets (NTA) at $1.44 per unit on 30 June 2024, so it's trading at a 20% discount to this.  

Abacus Storage King (ASX: ASK)

Abacus describes itself as a fully integrated owner, operator and manager of a self-storage 'operating platform'. At 30 June 2024, it had 123 assets with 647,050 sqm of space worth $2.88 billion. At the end of FY24, it had 36 locations in New South Wales, 25 in Victoria and 23 in Queensland.

The ASX dividend share is benefiting from several trends, including increasing housing density, population growth, and the rise of e-commerce. These are helping support demand, assisting the occupancy rate and the rental rate it can charge.

In its 'established portfolio', which had an average occupancy of 91% in the first quarter of FY25, the average rent per sqm increased 4.5% year over year. It's also boosting its operating profits by making acquisitions, with the fragmented sector providing ample opportunities, according to the company.

I think this Abacus Storage King is an effective investment target that will allow you to gain exposure to the increasing value of land in major Australian cities over time.

The company expects to pay an FY25 distribution of 6.2 cents per security, which translates into a forward distribution yield of 5.5% at the current Abacus Storage King share price of $1.13, following a 15% decline since 24 September 2024.

The post 2 no-brainer ASX dividend shares I'd buy right now for less than $1.20 appeared first on The Motley Fool Australia.

The property share is outperforming the market, with the ASX All Ords up just 0.19% to 8,044 points at the time of writing.

ASX All Ords share rising on profitable first year

This real estate investment trust (REIT) was listed on the ASX on 1 August last year after shares in Abacus Storage Operations Limited (ASOL) were stapled to units in Abacus Storage Property Trust (ASPT).

Abacus Group's chief financial officer, Evan Goodridge, said FY24 was "a strong first financial year for ASK as a standalone entity."

Here are the highlights for FY24:

• Total revenue and other income $290.5 million
• Net profit after tax (NPAT) $138.2 million
• Funds from operations (FFO) of $81.1 million (equivalent to 6.36 cents per share)
• Net tangible assets (NTA) of $1.58 per share
• Full-year distribution of 6 cents per security, reflecting an FFO payout ratio of 94%.

What else happened in FY24?

The ASX All Ords company said self-storage operating conditions remained robust despite economic uncertainty and lower consumer sentiment.

Established store revenue per available metre (RevPAM) increased by 4.6% to $327 per square metre (psm), up from $313 psm in FY23. This was driven by rental rate growth of 3.8% to $360 psm compared to $347 psm in FY23.

There was a 60 basis point increase in the occupancy rate to 91%.

Management said the company's operating margins remained resilient at 65% compared to 66% in FY23.

Abacus said its growth drivers in FY24 included acquisitions, with $137 million invested in eight operating stores and three development sites.

This added 35,100 square metres (sqm) of net lettable area (NLA) to its portfolio — the equivalent of a 5% increase.

Management said brand recognition was also a driver, with Storage King remaining the most searched self-storage brand on Google in Australia in FY24.

The ASX All Ords share leapt 5.88% last month when the REIT announced its divestment of the remaining stake in its listed Self Storage peer.

What did management say?

Abacus Group's Managing Director, Steven Sewell commented:

Despite the inflationary headwinds, we expect our portfolio to continue to benefit from a range of tailwinds over the short to medium term, including organic growth as the Self Storage category continues to mature in Australia and New Zealand, acquisition opportunities in a heavily fragmented sector and the longer term platform initiatives to drive growth in brand, customer and revenue management.

ASK remains well positioned to leverage its key enablers and deliver recurring income and value creation over the medium term, underpinned by its multi-pronged growth strategy.

What's next for this ASX All Ords share?

Abacus said it has a significant development pipeline and expects to deliver 18 new stores in prime metropolitan locations, adding about 103,000 sqm of new NLA to the portfolio over the short to medium term.

The company is investing in revenue and data management technology, which are expected to expand margins over the longer term.

Management says Abacus Storage King also has balance sheet capacity to fund further growth initiatives.

Abacus provided FY25 distribution guidance of 6.1 cents per share, reflecting its target payout ratio of 90% to 100% of FFO.

Abacus Storage King share price snapshot

The Abacus Storage King share price is up 12.34% in the year to date.

By comparison, ASX All Ords shares have lifted 2.15% over the same period.

The post Which ASX All Ords share is lifting on 'strong first financial year' results? appeared first on The Motley Fool Australia.

Luckily, next week is an example of the former.

Whenever an ASX share announces a dividend payment, it must also nominate an ex-dividend date for that payment. This 'ex-div' date is when a line is drawn in the sand between those shareholders who are eligible to receive the payment, and those who will miss out.

Put simply, if you wish to receive a company's latest dividend, you need to own the shares at least one day before the ex-dividend date. If you buy those shares on or after that date, you will miss out on the payment, with the seller retaining the rights to the cash.

As we noted above, there are quite a few ASX shares set to trade ex-dividend on the stock market next week. But today, let's go through no fewer than nine popular real estate investment trusts (REITs) that are in line to fork out their latest dividends (dividend distributions, to be precise).

Before we get right into it, it's worth remembering that dividend distributions from REITs rarely come with any franking credits attached. That's due to their unique composition, which prevents them from paying corporate taxes (from which franking credits are generated) like companies do.

With that out of the way, here are the nine popular ASX REITs with ex-dividend dates set for next week:

Nine ASX income stocks set to trade ex-dividend next week

 *Dividend yield as of Thursday's close

Foolish takeaway

Those are the nine popular REITs scheduled to trade ex-dividend next week.

All of these REITs currently have relatively large trailing dividend distribution yields. As such, we might see some fairly large share price drops when each of them goes 'ex-div'. That will reflect the hefty loss of value for new investors when this eligibility window closes.

So if you see any of these ASX REITs drop like a rock next week, you'll probably know why.

The post 9 popular ASX REITs with ex-dividend dates next week appeared first on The Motley Fool Australia.

Being able to buy a business at a good price can give us a good margin of safety, which can give us a better chance of achieving a positive return.

A lot of businesses have seen their share prices rise in the last six months, so I'm going to talk about two other stocks that I normally don't highlight.

Abacus Storage King (ASX: ASK)

This business is a fully integrated owner and manager of a portfolio of self-storage properties located across Australia and New Zealand.

In the recent FY24 first-half result, the business said self-storage operating conditions remained "robust" despite global inflationary and cost of living pressures. In HY24, revenue per available metre increased by 4.8% to $324 and the occupancy rate was 90.4%.

The ASX share points to a number of helpful structural demand factors for its future such as population growth, the rise of e-commerce and increasing household awareness of self-storage as an option.

The business reported it has net tangible assets (NTA) of $1.52 per security as at December 2023, and the Abacus Storage King share price is at a 19% discount to this. It's expecting to pay a distribution of 6 cents per security, which is a distribution yield of 4.9%.

Collins Foods Ltd (ASX: CKF)

Collins Foods is the operator of a large number of KFC franchisees in Australia, as well as a growing number of KFCs in Europe. The company is also responsible for Taco Bells in Australia.

As we can see on the chart, the Collins Foods share price is down around 20% from 9 January 2024, making it much cheaper.

In the FY24 first-half result, it revealed its Australian KFC footprint had reached 275 nationally, with management expecting the company to open nine to 12 new restaurants in Australia in FY24. It had 72 outlets as at HY24, with plans for a further three net new locations in the Netherlands in the second half of FY24. The ASX share now has 27 Taco Bells across Australia.

HY24 saw a good improvement from the ASX share's KFCs and Taco Bells, with revenue up 14.3% to $696.5 million, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increasing by 16.7% to $109.9 million and underlying net profit after tax (NPAT) up by 28.7% to $31.2 million.

That profit growth was impressive and shows the operating leverage in the business where profit can rise faster than revenue. It's the profit growth that usually drives the Collins Foods share price and dividend growth higher.

Based on the profit projections on Commsec, Collins Foods is valued at just 13 times FY26's estimated earnings with a possible grossed-up dividend yield of 5.8%. I may buy some myself when Fool's trading rules allow, if Collins Foods stays at this valuation.

The post 2 ASX shares that look absurdly cheap to me appeared first on The Motley Fool Australia.