Winston Sammut, Head of Real Estate at Euree Asset Management, gives his weekly look at the REIT industry.
Paul Sanger: Hello and welcome to this week’s edition of Winston’s Weekly, which covers all things property. I’m Paul Sanger, your host today on property. Winston, welcome back.
Winston Sammut: Thank you.
Paul Sanger: Now, Winston, let’s start with an update on what’s happening in the real estate industry.
Winston Sammut: Yes, it’s been a quiet week, sometimes speaking, and now that the effects are present, investors are looking for those effects to see what they’re going to do. But a lot of that depends on how bond yields move, especially in the U. S. , and they rose overnight. But whatever central banks do in terms of rate cuts, whether it’s the Federal Reserve, the U. S. or the RBA here, will depend entirely on knowledge. will depend on what knowledge will be published, when it will be published, and how that knowledge will be interpreted. But there has been a noticeable slowdown in customer spending. So I suspect the likelihood of a rate cut is on the horizon. But therein lies again the challenge of time.
Paul Sanger: yes, because last week we discussed that, you know, the chairman of the U. S. Federal Reserve is not going to be able to do so. The U. S. government was signaling to markets that one or two rate cuts were definitely in play. Overnight, the CPI figure came out and, you know, it was higher than expected. Definitely a marvel for the market. The market rallied and bond yields clearly reflected this wonder overnight. Do you think that will have an effect on stocks this morning?
Winston Sammut: I think so. It will probably propose to postpone the rates a little longer than anticipated. But I think the messes in terms of the CPI are basically the charging for utilities, insurance, electricity, all that kind of stuff, which are still high, across the United States. United States and here.
Paul Sanger: You know, I read this morning that after that CPI number, the real outlook for a rate cut in June only came down slightly and in July it went up slightly. So, you know, it turns out to be a pretty calm situation. reaction to that number. But probably, you know, the market is focused on other knowledge issues that come up.
Winston Sammut: Exactamente. De done, we know there will be rate cuts, but we don’t know when. And trying to pinpoint when that will happen is a bit difficult.
Paul Sanger: As long as they come, June, July, it doesn’t matter, as long as they come.
Winston Sammut: yes.
Paul Sanger: All right, let’s move on. Can you give us an update on the deal with Newmark Property (ASX:NPR) and Euree Asset Management’s current position?
Winston Sammut: Okay. Well, last week, Bunnings announced that he would make the unconditional offering next Thursday, March 21. And at this point, before this announcement, end date. . . The be be offering was open until March 22. They prolonged this era for two weeks, until April 12. And I deserve to say probably because the acceptances have been relatively slow. Lately, they own 36% of the organization and need 50. 1%. But when it becomes unconditional, the 50. 1 disappears because there are no situations to apply to it. So, I suspect they’re moving a little slow.
Eurea’s position has not changed. We continue to strive to reach the five % threshold to convene an Extraordinary General Assembly and remove them as ROE.
Paul Sanger: I appreciate the here.
Winston Sammut: There’s M&A activity and there’s been an evolution in that area. This is Eureka (ASX:EGH), which is the subject of an offering from the Aspen Group (ASX:APZ).
Paul Sanger: Yes.
Winston Sammut: It’s a paper offer. That’s 0. 26 shares of Aspen for every share of Eureka, which at Aspen’s current time values at about 46 cents, 47 cents. Now, there has been a significant statement by the shareholders, or some of them, of an organization called Filetron, who have accumulated an 18% stake in Eureka and paid costs of up to 54 cents. So, it will be appealing to see what plays out on that front.
Paul Sanger: And if you’re a gamer, are you going through magic 19. 9 and causing trouble?
Winston Sammut: Personally, I don’t think they’re going above 19. 9. What they’ve actually done is that by going above 10 percent, they can block the full acquisition and delisting of Eureka, so that it’s still an indexed product. entity because they can block forced acquisition.
Paul Sanger: And that participation has increased markedly in recent weeks.
Winston Sammut: Yes.
Paul Sanger: So there’s an intention?
Winston Sammut: Yes, there is an intention.
Paul Sanger: I understand you. And look, until next week, what will we expect in real estate?
Winston Sammut: Probably the same. Interestingly, as of yesterday’s close, the sector was up 3. 5 percent for the month. So it’s been another smart month for the REIT industry. Also, in the coming weeks, most of them will be ex-distributions from the March quarter, which makes it a bit attractive. I don’t expect other people to sell until they’ve earned their distribution, so costs remain stable for the next few weeks.
Paul Sanger: Winston, thank you for your time and your ideas.
Winston Sammut: It’s my pleasure.
Paul Sanger: Thank you.
Ends
Disclaimer: Sequoia Financial Group (ASX: SEQ), the parent company of Finance News Network, owns a 20% stake in Euree Asset Management.
Get updates delivered straight to your inbox.
Terms of Use | Privacy Policy | Contact | Mail
Increases across all areas of Deep Leads resources: quality, tonnage and target area ABx Group has reported a 30% increase in its Mineral Resource Estimate (MRE) at the Deep Leads Ionic Adsorption Clay (IAC) rare earth deposit in northern Tasmania. The accumulation in MRE comes from 36 extension wells analyzed, representing a significant northward extension for the existing Deep Leads prospect.
Lake Resources (LKE. ASX) – LKE has signed two non-binding memorandums of understanding in the area of 10 days. Ford Company (Ford) signed a memorandum of understanding for around 25,000 t/year and last week, Hanwa, a Japanese commodity trader, signed a memorandum of understanding for up to 25,000 t/year. Subject to execution, this is a feat as Ford and Hanwa are poised to engage in longer-term strategic partnerships with LKE. Commercial negotiations are still ongoing, but should, if Ford and Hanwa inject new capital into LKE, further reduce the risk of project financing and thus ensure that LKE and Kachi are fully funded.
Two recent severity studies have particularly exceeded expectations and revealed the possibility of expanding the existing MRE at Throssell Lake, as well as a significant expansion opportunity at Yeo Lake. This reinforces the prospect of a multi-decade-long Tier 1 SOP production facility around Throssell Lake.
TMG is currently completing paints for the planned PFS in early 2023, adding the start of drilling in the third quarter of 2022, evaporation testing and permitting activities. The effects of these systems will affect the SFP and any long-term resource improvements.
SOP reference prices have risen to around 940 USD/t due to recent geopolitical developments. The October 2021 scoping study assumed an SOP value of $550/t and contained a sensitivity study showing that every 10% accumulated in value effects at a cumulative $144 million in NPV of the $364 million allocation. The increase of approximately 70% during the scoping study implies an allocation NPV of approximately $1. 4 billion.
Despite the drop in oil and fuel prices, which fell by 5. 4% and 19. 7% respectively in August, Calima managed to record an improvement in its key industry indicators.
WT Financial Group Limited (WTL) is a fast-growing diversified monetary company founded in 2010 and indexed on the Australian Securities Exchange (ASX) in 2015. Their recommendations and product offerings are primarily provided through an organization of independent money advisors who act as legal representatives. . de WTL in connection with its broker organisation business Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group). It has approximately 275 advisers in more than two hundred money advice firms across Australia. It also operates a direct-to-consumer operation under its Spring Financial Group brand.
In May 2021, Corporate Connect analyst Marc Sinatra published a comprehensive study report on ASX-listed biotech company Immutep Ltd (ASX: IMM). He was so inspired by IMM that Corporate Connect felt it was imperative to publish a follow-up report that valued the company. as the market did not see the great prospects of Eftilagimod Alpha (EFTI).
The follow-up report published today. Using comparables, after adding a monetary rebate to its EV estimate and dividing it by the total number of percentages issued, Corporate Connect now puts the fair price of a percentage of Immutep at A$2. 20.