Australia has just two oil refineries, both of which have been running full tilt since the Iran war began.

The conflict between the US, Israel, and Iran has created a significant energy shock, with oil and gas prices soaring.

This has sparked fears of higher inflation and further increases in interest rates in Australia.

Meanwhile, some ASX 200 shares have attracted upgrades from the experts this week.

Let's take a look.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven share price is $8.42, down 0.9% today.

Over the past month, this ASX 200 coal share has fallen 9%.

Morgan Stanley upgraded Whitehaven shares to a buy rating today.

But the broker shaved its 12-month price target from $9.80 to $9.75.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is $13.89, down 3.9%.

Over the past month, the ASX 200 gold mining share has lifted 6%.

Morgans upgraded Evolution shares from hold to accumulate yesterday.

However, the broker reduced its 12-month target from $17.16 to $16.10.

Morgans said:

We upgrade to an ACCUMULATE (from HOLD) following recent weakness across the gold sector which we believe has uncovered value in a high-quality name, despite a strong share price reaction post the result.

The gold price fell 21% during the first three weeks of the Iran war.

The A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is $7.56, down 2%.

Over the past month, the ASX 200 consumer staples share has tumbled 20%.

Morgans upgraded A2 Milk shares from a hold rating to accumulate on Monday.

However, the broker lowered its share price target from $9.50 to $8.70.

This followed a trading update from A2 Milk.

Morgans said:

A2M's FY26 earnings downgrade was due to factors largely out of its own control, being higher freight/supply chain costs associated with the conflict in the Middle East and delays getting product released (enhanced testing and customs clearance) following peer recalls.

Importantly, the demand for its products is strong.

Guidance has been revised due to supply constraints (lower sales and product mix issues dilute margins) and higher costs.

In our view, while some of the issues are one-off in nature, increased costs associated with the conflict are likely to continue into FY27.

Despite this, we still expect strong growth in FY27 given A2 Pokeno is expected to break even and new China label (CL) IF products will be launched.

Ingenia Communities Group (ASX: INA)

The Ingenia Communities share price is $4.11, up 1.1%.

Over the past month, the ASX 200 property share has eased 0.4%.

UBS upgraded Ingenia shares to a buy rating today.

The broker has a 12-month price target of $4.60.

The post 4 ASX 200 shares newly upgraded this week appeared first on The Motley Fool Australia.

What did Ingenia Communities report?

• Revenue: $257.3 million (1H25: $256.9 million)
• EBIT: $85.0 million, down 1%
• Underlying profit: $62.1 million, underlying EPS 15.2c (down 10%)
• Statutory profit: $97.4 million, up 11%
• New homes settled: 248 in 1H26
• Half-year distribution: 4.8 cents per stapled security, payable 26 March 2026

What else do investors need to know?

Ingenia maintained a pronounced second-half skew, with accelerating development settlements expected to support results in the remainder of FY26. The business is targeting FY26 EBIT between $180.5 and $188.7 million, aiming for delivery at the top of this guidance range.

The Group invested $88 million during the half in development projects, new site acquisitions, and growth, including expanding its development pipeline through a new site in Townsville and progressing seven further sites in due diligence.

Both the residential (Living) and Holidays arms saw solid momentum. Lifestyle Rental EBIT rose 6% to $25.7 million, and Holidays EBIT improved 10% to $31.5 million, reflecting resilient demand, higher occupancy, and rate growth, despite higher costs in marketing and utilities.

What's next for Ingenia Communities?

Management reaffirmed that the Group is on track to deliver FY26 results at the top of the guidance range, aided by a strong pipeline and increased activity expected in the second half. Two new communities, including the expanded Latitude One, should contribute to settlements and earnings in FY26.

Industry demand drivers—like an ageing population and the housing shortage—continue to support Ingenia's outlook. The company currently has 440 deposits and contracts in place and is commencing new projects, setting up a strong runway for growth heading into FY27.

Ingenia Communities share price snapshot

Over the past 12 months, Ingenia Communities shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Ingenia Communities affirms top-end guidance after first-half results appeared first on The Motley Fool Australia.

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Two names have just reported their H1 FY25 numbers today, and the market is reacting positively.

These are Centuria Industrial REIT (ASX: CIP) and Ingenia Communities Group (ASX: INA). Both stocks are in the green today, so let's take a closer look at what they posted for the first half.

ASX 200 REITs book solid H1 numbers

The first ASX 200 REIT is Centuria Industrial REIT. It reported $56.6 million in funds from operations (FFO) in the first half, which translated to FFO per unit rising to 8.9 cents.

It also declared a distribution of 8.1 cents per unit.

Its portfolio continued to expand, now claiming 79,000 square metres of new leases signed, with re-leasing spreads averaging 50% "across 13 lease deals".

The ASX 200 REIT also saw a $47 million valuation gain across its properties.

Centuria left the half with a 33.5% gearing ratio, with 85% of its debt hedged against interest rate fluctuations.

Management reaffirmed its FY25 guidance, calling for an FFO of 17.5 cents per unit and a distribution target of 16.3 cents per security.

Meanwhile, Ingenia Communities put up a reasonable set of numbers for H1 FY25 today.

The company reported a 21% increase in revenue to $256.9 million, while pre-tax earnings surged 48% year over year.

This saw earnings per share (EPS) rise 58% to about 17 cents.

Management said a driver of this growth was the 258 new homes settled in the first half, a 47% increase from last year.

The company now has 5,225 development sites in progress as part of its "extensive pipeline".

The ASX 200 REIT also popped back in January when it raised its FY25 guidance, calling for 20% to 23% growth in pre-tax profit to $165 million at the upper end of the range.

Management reaffirmed this guidance in today's update.

REITs set to run higher?

It's been a difficult period for the ASX 200 REIT space these past few years. First, COVID-19, then the so-called 'work from home' (WFH) trend, both of which hit the segment.

But that could all be set to change from 2025.

According to global Real Estate company CBRE Group Inc, the Australian housing market is set to grow this year.

CBRE notes that the Australian economy is projected to grow by around 2% this year, with "scope for three interest rate cuts". This, it says, should flow positively to the housing market.

We forecast +15% growth in investment volumes in 2025. Investors have indicated net buying intention and assets such as Office are trading at 30% below replacement value. The yield tightening cycle should commence in 2025.

The majority of lenders that we survey have also indicated a willingness to grow their commercial real estate exposures. 

CBRE isn't alone, either. As reported in The Australian, investment bank JP Morgan sees value in the sector this year.

As my colleague Tristan noted, the firm is joined by Citi, which reckons now might be the time for ASX 200 REITs to perform.

Foolish takeout

These 2 ASX 200 REITs are catching a bid today after posting their results for the first half of FY25.

Zooming out, Centuria is down 10% in the past year, with Ingenia up 18% in the same time.

The post 2 ASX 200 REITs surging after posting H1 FY25 results appeared first on The Motley Fool Australia.

Well, some analysts have identified ASX property shares, including real estate investment trusts (REITs), as a sector that could offer great value right now.

It has certainly been a rough period for the real estate sector, largely because of high interest rates. The cost of debt has been a headwind for operating profits, while residential and commercial property prices have been impacted too. This has led to the share prices of numerous businesses in the property sector suffering declines over the past few years.

Let's look at where some investors are seeing opportunities.

Expert views on the real estate sector

According to reporting by the Australian Financial Review, Amy Pham, a portfolio manager at Pengana Capital Group Ltd (ASX: PCG), explained earlier this month why real estate stocks are so appealing:

We are very excited because we think that there are a few things that are going to work in terms of making the REIT sector more attractive.

On a risk-adjusted basis, REITs are looking really cheap compared to global equities and general equities. We're entering a rate-cutting phase, all of that is going to help with the valuation of REITs and make them more attractive.

There are a few turning points for us. If you position your portfolio, if you've done your research, you can generate alphas. This is the time.

We know that valuations have bottomed because the 10-year bond has stabilised, but operationally what we are looking out for is for [leasing] incentives to go down and also for vacancy to fall.

But for Pham, the interest rate reduction is not the only catalyst for some property businesses. Companies involved in residential development could benefit from helpful conditions such as strong population growth, low unemployment, and a shortage of housing.

Which ASX property shares are exciting options?

Some of the businesses in the Pengana High Conviction Property Securities Fund include Goodman Group (ASX: GMG), Ingenia Communities Group (ASX: INA), Mirvac Group (ASX: MGR), Scentre Group (ASX: SCG), and Stockland Corporation Ltd (ASX: SGP).

Pham explained why the portfolio has been positioned in this direction:

The way we have positioned the portfolio is that we are very favourable to the residential themes.

But we're not positioning the portfolio based on a rate cut – we're not economists. There are structural drivers for sustainable growth and a rate cut will be just a bonus.

The AFR also reported on comments from Citi analyst Howard Penny that some major property businesses may provide commentary during this reporting season on the "foundations being put in place for growth into 2025 and 2026".

Penny also suggested that while there may be some laggards in the sector, other companies may provide "upside surprises".

For Citi, it's stocks like Goodman, National Storage REIT (ASX: NSR), Ingenia, Scentre, and Stockland that could benefit in an "improving macro backdrop".

The post Experts are bullish on this ASX share sector ahead of 'turning points' appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today 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.

Amid the celebrations, a remarkable 19 ASX 200 shares have also set new multi-year price peaks.

Let's take a look.

19 ASX 200 stocks hit new price highs amid market record

Macquarie Group Ltd (ASX: MQG)

The ASX 200 bank share hit a new all-time high of $242.15 despite no company news today.

Wesfarmers Ltd (ASX: WES)

The ASX 200 consumer discretionary sector's biggest company hit a new all-time high of $77.44 per share.

There was no news from Wesfarmers today.

Aristocrat Leisure Ltd (ASX: ALL)

The consumer discretionary sector's second-biggest stock also hit a new all-time high today.

The ASX 200 gaming stock reached $70 per share in intraday trading despite no company news today.

QBE Insurance Group Ltd (ASX: QBE)

The ASX 200 financial share hit a 15-year high of $20.73 despite no news from the insurance giant today.

Suncorp Group Ltd (ASX: SUN) 

The Suncorp share price hit an 18-year high of $20.67 despite no news today.

Coles Group Ltd (ASX: COL)

The Coles share price hit a two-and-a-half-year high of $19.57 despite no price-sensitive news from the supermarket today.

Resmed Inc (ASX: RMD) 

The Resmed share price hit a four-year high of $40.75 despite no news from the ASX 200 healthcare giant.

Insurance Australia Group Ltd (ASX: IAG)

The ASX 200 insurance giant hit a multi-year high share price of $9.03 in intraday trading on Thursday.

There was no news from IAG today.

Computershare Ltd (ASX: CPU)

The share price of financial services company and stock registry Computershare hit a new all-time record.

This ASX 200 industrials share reached $35.37 in intraday trading today.

QUBE Holdings Ltd (ASX: QUB)

Fellow ASX 200 industrials share QUBE hit an all-time high of $4.16 despite no company news today.

HUB24 Ltd (ASX: HUB)

This ASX 200 financial share hit an all-time record of $80.77 despite no news today.

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price hit a 3-year high of $5.24 despite no news from the retailer today.

Ansell Ltd (ASX: ANN)

The Ansell share price hit a 3-year high of $35.50 in intraday trading despite no official news.

Genesis Minerals Ltd (ASX: GMD)

This ASX 200 gold share hit a 14-year peak of $3.15 despite no news from the company.

Capricorn Metals Ltd (ASX: CMM)

Fellow gold miner Capricorn Metals also hit a record-high share price today.

Capricorn Metals shares rose to $7.71 apiece after the miner released its December quarter activities report.

Gold Road Resources Ltd (ASX: GOR)

Gold Road shares rose to a record $2.53 per share despite no price-sensitive company news today.

Ingenia Communities Group (ASX: INA)

The ASX 200 property stock hit a 3-year high share price of $5.78.

The seniors and holiday living property developer had no news for the market today.

News Corporation (ASX: NWS)

This ASX 200 communications stock hit a record high of $51.47 per share.

There is no price-sensitive news from the global media organisation today.

Monadelphous Group Ltd (ASX: MND)

Monadelphous shares rose to a 4-year high of $15.71 per share despite no company news.

The post 19 ASX 200 shares smashing multi-year highs as market peaks appeared first on The Motley Fool Australia.

Although this hasn't quite lifted the ASX 200 itself to a new high, we are still seeing no less than a dozen ASX 200 stocks hit new 52-week highs today.

Here they are:

Cheaper by the dozen? 12 ASX 200 stocks at new 52-week highs today

*at the time of writing

What can we learn from these new 52-week highs?

What's interesting about this slew of ASX 200 stocks at new 52-week highs today is that they hail from different corners of the ASX.

We have a consumer staples giant in Coles, but also airline Qantas, healthcare share Telix Pharmaceuticals, and gold miner Capricorn Metals.

The sector that seems to be most overrepresented is financials, though. Fund managers Magellan and Pinnacle, insurance heavyweights IAG and QBE, and financial services company HUB24 are all at new highs today.

There hasn't been much in the way of big news out of these ASX 200 stocks. As such, it's likely that the general market trend is responsible for their new 52-week highs today. Perhaps the latest inflation figures, which were released this morning, are helping to persuade investors to pile into these popular stocks.

Either way, it has certainly been a good day thus far for many ASX 200 investors.

The post These 12 ASX 200 stocks just hit new 52-week highs appeared first on The Motley Fool Australia.

The ASX 200 dipped then flipped in early trading after a sell-off on Wall Street overnight.

The benchmark index has since recovered and entered positive territory, currently up 0.13%.

Amid the volatility, the following seven ASX 200 shares have hit new multi-year high share prices.

7 ASX 200 stocks hitting new price peaks on Tuesday

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price hit a 15-year high of $20.49 despite no news from the insurance giant today.

This ASX 200 financial share is up by around 29% over the past 12 months.

Resmed Inc (ASX: RMD) 

The Resmed share price hit a four-year high of $40.44 despite no news from the ASX 200 healthcare giant.

Top broker Goldman Sachs is bullish on the sleep disorder treatment company due to its large addressable market, potential market share gains, and expanding margins.

Goldman has a buy rating on the ASX 200 healthcare stock with a 12-month price target of $48.90.

Resmed shares have surged by around 42% over the past 12 months.

Telix Pharmaceuticals Ltd (ASX: TLX) 

The Telix Pharmaceuticals share price hit an all-time high of $29.16 on Tuesday.

The radiopharmaceuticals company announced the completion of the acquisition of RLS (USA) today.

RLS is America's only Joint Commission-accredited radiopharmacy network distributing PET, SPECT and therapeutic radiopharmaceuticals.

Telix management said:

The acquisition is part of Telix's strategy to establish an integrated radiopharmaceutical ecosystem, enhancing its ability to deliver novel therapeutic and diagnostic radiopharmaceuticals to patients.

The ASX 200 biotech stock is up 148% over the past 12 months.

Hub24 Ltd (ASX: HUB)

The Hub24 share price hit an all-time record of $78.10 despite no news from the wealth management platform provider today.

The ASX 200 financial stock is up a whopping 105% over the past year.

Ingenia Communities Group (ASX: INA)

The Ingenia Communities share price hit a three-year peak of $5.60 today.

The retirement village developer had no news for the market today.

The ASX 200 property stock has gained around 29% over the past 12 months.

News Corporation (ASX: NWS)

The News Corporation share price hit a record high of $51.11 per share in intraday trading on Tuesday.

There is no price-sensitive news from the media giant today.

This ASX 200 communications stock is up by around 30% over the past year.

News Corporation was the No. 1 stock in the communications sector in 2024.

Monadelphous Group Ltd (ASX: MND)

Monadelphous shares rose to a four-year intraday high of $15.50 per share despite no company news.

This ASX 200 industrials stock has gained almost 14% over the past 12 months.

The post 7 ASX 200 stocks hitting multi-year highs today 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.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Among them are:

• Ansell Ltd (ASX: ANN),
• ARB Corp Ltd (ASX: ARB),
• Nuix Ltd (ASX: NXL),
• Judo Capital Holdings Ltd (ASX: JDO), and
• Ingenia Communities Group (ASX: INA).

Let's dive straight into what's pushed these shares to new heights.

Ansell: Forecasting growth

Ansell's shares are up around 7% to $29.29 at the time of writing following its full-year results, which showed mixed growth at the top and bottom lines. This level is the company's new 52-week high.

While the company reported a 2.4% decline in sales and a 5.2% drop in earnings before interest and tax, management's upbeat guidance for FY25 may have balanced the weaker results.

Ansell expects earnings per share (EPS) to rise to between US$1.07 and US$1.27 in the coming year, up from US$1.055 last year. The market responded positively, pushing the stock to new highs as investors likely anticipate growth.

ARB hits new 52-week high

Shares of ARB, the 4×4 parts manufacturer, are up over 6% on Tuesday and currently trade at $42.85 apiece.

ARB hit new 52-week highs of $43.35 early in the session before settling at current levels.

In FY24, the company reported a 3.3% increase in sales to $693.15 million and an 18.1% boost in profit after tax to $104.1 million.

This allowed ARB to raise its dividend by 11.3% to 69 cents per share.

The company remains optimistic, citing strong demand for its products and a "strong order book".

Nuix: Revenues drive share price

Nuix is also posting gains on Tuesday, with its share price climbing more than 9% to $4.78 apiece at the time of writing, signalling new 52-week highs.

It reported FY24 earnings last week, with revenues up 21% to $220.6 million.

Pre-tax profits were also up 38% year over year, hitting $64 million, underscored by a 14% increase in annualised contract value (ACV) to $211.5 million.

Management is targeting further ACV growth of 15% in FY25. Investors have pushed the stock to new heights at a rapid pace, with the stock up 46% in the past week.

Judo Capital: Lending growth a standout

Judo Capital shares are up almost 10% on Tuesday to $1.52 after the company posted a strong FY24 performance.

The small business lender reported a 20% increase in gross loans and advances (GLA) to $10.7 billion, driving a 2% rise in underlying profit before tax to $110 million.

Investors are likely excited about Judo's FY25 guidance, which targets 15% profit growth. Management also said lending growth was at a record for June.

Judo shares hit new 52-week highs today, and they are now up 16% in the past month.

Ingenia Communities: Strong sales boost shares

Ingenia shares are around 7% higher at the time of publication and are fetching $5.44 apiece.

The ASX 200 real estate stock reported a 20% increase in revenue to $472 million in its annual results, alongside a 17% rise in EBIT to $125.7 million.

The company settled 462 new homes during FY24 and has a development pipeline of over 5,300 sites.

Investors have piled into Ingenia shares today, and if the trend continues, the company could close at a new 52-week high today.

Ingenia shares are up 22% this year to date.

The post These ASX shares punched new 52 week highs after F24 earnings appeared first on The Motley Fool Australia.

At the time of writing, shares in the real estate development and management company are trading more than 7% higher at $5.45 apiece.

Let's see what the company posted.

ASX 200 real estate stock pops on FY24 results

The key takeouts from the year include the following:

• Revenue came to $472.3 million, up 20% on FY23
• Earnings before interest and tax (EBIT) of $125.7 million, representing a 17% increase from FY23
• Earnings per share (EPS) of 23.3 cents, reflecting a growth of 14%
• Statutory Profit came to $14 million, down 78% from the previous year.
• Development activity consisted of 462 new homes settled in FY24, with an extensive pipeline of 5,311 development sites
• Distribution of 6.1 cents per stapled security

What else happened in FY24?

The ASX 200 real estate stock made significant progress across its residential communities, development projects, and tourism business. Management said it continues to "manage inflation and interest rate risk", linking rent growth in its land-leased communities to the consumer price index (CPI).

The company increased home settlements by 24%, with an average sales price now exceeding $600,000.

The ASX 200 real estate stock also completed 11 asset sales, whilst it obtained an additional $125 million in cash via a debt facility set to mature in five years' time.

It closed the year with $2.5 billion in owned or managed properties, with assets distributed across 102 communities.

Management also declared a final distribution of 6.1 cents per security, bringing the full-year distribution to 11.3 cents per security, up 3% year over year.

Meanwhile, its development pipeline at the end of FY24 consisted of around 16,000 income-generating homes and more than 5,300 land lease homes.

What did management say?

Ingenia CEO John Carfi highlighted the company's resilience and growth during the year:

While we were pleased to increase settlements, development returns for some projects remain below target. I have spent considerable time in this area of the business, and we are progressing a range of initiatives that will ensure we move towards targeted returns over the medium term, building development into the growth engine of this business. Our focus is to optimise returns on current and future projects with a critical lens on execution, efficiency and accountability.

I'm confident our focus on operational efficiency and productivity will improve security holder returns as we build further scale and simplify the business through a clear focus, financial discipline, greater efficiency and excellence in execution.

What's next?

The ASX 200 real estate stock aims to build on its momentum in FY25 by expanding its land lease portfolio and improving development outcomes.

The ASX 200 real estate stock is aiming for earnings of 24.4 cents per share in FY25 and growth in EBIT of 10–15% this year. Carfi added:

The business is well placed to deliver growing returns and capitalise on the value inherent in our
development pipeline and asset base, with good momentum demonstrated into FY25. We have a $2.5 billion portfolio (owned or managed), a pipeline of over 5,300 new home sites and the capacity to increase production to meet customer demand.

We are targeting further growth in FY25 as we maintain our focus on the seniors housing and domestic travel sectors, which have proven strong tailwinds. Our recurring revenue streams provide a solid base and are growing, supporting returns as we focus on improving development outcomes.

ASX 200 real estate stock snapshot

This ASX 200 real estate stock is being heavily bought today after the company posted its FY24 results.

In the last 12 months, it has gained 35%, providing a considerable advantage over the broader market.

The post ASX 200 real estate stock rallies 7% after strong sales in FY24 appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

ASX REITs have recently experienced significant challenges due to higher interest rates. However, it appears that interest rates may now be at or near their peak.

Hence, a fund manager has shared their perspective on whether this is the right time to invest in REITs. Funds management business Janus Henderson has discussed where it sees structural growth and if this is a turning point.

Is it time to invest in REITs?

Janus Henderson notes the commercial real estate sector has been through difficulties over the last two years as central banks tried to tame inflation.

The fund manager suggests a stabilisation of interest rates, with potential interest rate cuts, "should be good news" for ASX REITs.

Janus Henderson suggests the REIT market may be entering "the early innings of a potentially significant recovery". If so, the cost of and access to capital, particularly debt financing, should "increasingly play a part in differentiating" between businesses and investors in this space.

Janus Henderson's Guy Barnard, co-head of global property equities, said:

We are hitting an inflection point in underlying commercial real estate markets, where you will see people rebuilding their allocations as it becomes clearer that underlying real estate markets have bottomed.

Where to buy

The fund manager points out that the real estate market is evolving rapidly due to the growth in e-commerce, which has created "significant headwinds" in retail, while a shift to working from home is "creating challenges" in the office sector.

Barnard said:

We are trying to tap into those areas of structural demand from tenants, rather than trying to ride an economic cycle. We see the growth of digitisation as a great tailwind for tech real estate, including areas like data centres and cell towers.

While the fund manager didn't name any particular stocks, I'll point out a few. REITs with exposure to warehouses, logistics and distribution include Centuria Industrial REIT (ASX: CIP), Goodman Group (ASX: GMG) and Dexus Industria REIT (ASX: DXI).

Goodman is also rapidly growing its investments in data centres. While Nextdc Ltd (ASX: NXT) is not an ASX REIT, it is a way to play that theme on the ASX of building and owning data centres and generating revenue from them.

Janus Henderson also sees opportunities in demographics where baby boomers enter retirement and require underlying senior housing accommodation. Healthco Healthcare and Wellness REIT (ASX: HCW) can provide some of that exposure, though it has a diversified portfolio. Meanwhile, Ingenia Communities Group (ASX: INA) is a business that owns retirement communities.

The post Are ASX REITs a good investment right now? appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.