REAL ESTATE INVESTMENT TRUSTS – AUSTRALIA

Westfield takeover secures all-clear

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Original article by Ben Wilmot
The Australian – Page: 22 : 18-May-18

Unibail-Rodamco’s shareholders have endorsed the European group’s $A30bn takeover of Westfield Corporation, with some 94 per cent of votes cast supporting the deal. The transaction must still be approved by Westfield shareholders, and Winston Sammut of Folkestone Maxim Asset Management says this is likely to be a formality given that proxy advisers support it. Unibail-Rodamco’s secondary listing on the Australian sharemarket is slated for 31 May.

CORPORATES
WESTFIELD CORPORATION – ASX WFD, UNIBAIL-RODAMCO, UNIBAIL-RODAMCO-WESTFIELD – ASX URW, FOLKESTONE MAXIM ASSET MANAGEMENT LIMITED, APN PROPERTY GROUP LIMITED – ASX APD, CLSA AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 A-REIT INDEX

Unlisted funds beat market in 2017

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 32 : 27-Feb-18

Australian unlisted property funds delivered average total returns of 23.4 per cent in 2017, compared with a return of just 7.7 per cent for Australian equities. Maarten Broek of MCSI stated that the strong performance of unlisted property funds was aided by factors such as rental growth and investor demand, while he noted that yields had contracted in recent years. Australian direct property also performed well in 2017, with a total return of 11.9 per cent.

CORPORATES
MSCI INCORPORATED, ZENITH INVESTMENT PARTNERS PTY LTD, PROPERTY FUNDS ASSOCIATION OF AUSTRALIA INCORPORATED, AUSTRALIAN UNITY LIMITED

There is no plan B to Westfield takeover: Lowy

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 34 : 23-Feb-18

European shopping centre group Unibail-Rodamco announced plans to acquire shopping mall owner Westfield Corporation in early December. At the time, Unibail’s scrip-focused deal valued Westfield at $A10.01 per share, but this had fallen to around $A8.82 per share on 22 February. Asked about the future of the deal at the announcement of Westfield’s full-year results, co-CEO Peter Lowy advised that there was "no plan B" in place. Westfield’s 2017 profit of $US1.55 billion is 13.5 per cent higher than previously.

CORPORATES
WESTFIELD CORPORATION – ASX WFD, UNIBAIL-RODAMCO, MACQUARIE GROUP LIMITED – ASX MQG, JP MORGAN AUSTRALIA LIMITED

Landlord tougher than Lowy

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Original article by Matthew Cranston
The Australian Financial Review – Page: 1 & 33 : 20-Feb-18

Unibail-Rodamco owns EUR42.5 billion ($A66 billion) worth of shopping centres across Europe. CEO Christophe Cuvillier notes that it weeds out 10 per cent of its poorest-performing tenants every year. Cuvillier says he is unsure if any other shopping centre operates in such a manner. He is currently in Australia to speak with Westfield Corporation and Unibail-Rodamco investors in order to convince them of the merits of his company’s $A33bn bid for Westfield.

CORPORATES
UNIBAIL-RODAMCO, WESTFIELD CORPORATION – ASX WFD, DEUTSCHE BANK AG, GOLDMAN SACHS AUSTRALIA PTY LTD, NM ROTHSCHILD AUSTRALIA HOLDINGS PTY LTD, SCENTRE GROUP – ASX SCG, L’OREAL SA

Push for Unibail to recut takeover

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Original article by Ben Potter
The Australian – Page: 20 : 19-Feb-18

French shopping centre group Unibail-Rodamco released details of a plan to acquire the Lowy family’s Westfield Corporation on 10 December. At the time the deal was valued at $A32 billion, but its value has since fallen by over 12 per cent, due to a combination of a fall in Unibail’s share price and a rise in the Euro and the Australian dollar against the US dollar. Michael Doble of APN says that if there was to be any changes to the terms of the transaction that the impetus for change would come from the Lowys.

CORPORATES
UNIBAIL-RODAMCO, WESTFIELD CORPORATION – ASX WFD, APN FUNDS MANAGEMENT LIMITED, FOLKESTONE MAXIM ASSET MANAGEMENT LIMITED, PHOENIX PORTFOLIOS PTY LTD, RESOLUTION CAPITAL LIMITED, ANTARES EQUITIES

Lowys accept $33bn takeover

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Original article by Ben Wilmot, Turi Condon
The Australian – Page: 1 & 4 : 13-Dec-17

Paris-based Unibail-Rodamco will own a portfolio of 104 shopping centres worldwide after striking a deal to acquire Westfield Corporation for $US24.7bn ($A32.76bn). The deal comprises Westfield’s 35 shopping centres in the US and the UK, but it does not include Westfield-brand shopping centres in Australia, which are owned by the separately-listed Scentre Group. Unibail-Rodamco intends to rebadge its existing portfolio of shopping centres with the Westfield brand.

CORPORATES
WESTFIELD CORPORATION – ASX WFD, UNIBAIL-RODAMCO, SCENTRE GROUP – ASX SCG, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT

Shopping centres will survive peak Amazon

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Original article by Vesna Poljak
The Australian Financial Review – Page: 15 & 24 : 13-Nov-17

The Australian real estate investment trust sector has responded more proactively to the threat posed to retail trade by Amazon than many have given it credit for, according to Pete Davidson of BT Investment Management. REIT stocks currently favoured by BTIM include Westfield, Mirvac and Charter Hall, along with Arena and Folkestone, which both have interests in childcare centres. Other stocks that BTIM like include Precinct Properties and Vital Healthcare.

CORPORATES
AMAZON.COM INCORPORATED, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, WESTFIELD CORPORATION – ASX WFD, MIRVAC GROUP – ASX MGR, CHARTER HALL GROUP – ASX CHC, ARENA REIT – ASX ARF, FOLKESTONE LIMITED – ASX FLK, PRECINCT PROPERTIES, VITAL HEALTHCARE PROPERTY TRUST, MYER HOLDINGS LIMITED – ASX MYR, SCENTRE GROUP – ASX SCG, MITCHELL MONTAGU

SCA profit jumps as shoppers spend up

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Original article by Elizabeth Redman
The Australian – Page: 23 : 9-Aug-17

The listed Shopping Centres Australasia Property Group has posted a 2016-17 profit of $A319.6m, which is 73 per cent higher than previously. The total value of its portfolio of shopping centres rose from $A1.89bn to $A2.36bn. The real estate investment trust has advised that it has rebalanced its mix of tenants to include non-discretionary retailers that are less likely to lose customers to online giant Amazon than outlets such as clothing stores.

CORPORATES
SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, AMAZON.COM INCORPORATED, CHARTER HALL RETAIL REIT – ASX CQR

Be cautious about retail landlords, Citi warns clients

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 37 : 8-Aug-17

Shares in listed retail property trusts such as Vicinity Centres, Scentre Group and Westfield Corporation have struggled recently, due to concern that their tenants will be damaged by the arrival of Amazon in Australia. However, the general consensus of analysts is that retail real estate investment trusts will post earnings growth of five per cent for 2018. Citigroup is less optimistic than some of its peers, predicting growth of just 3.5 per cent.

CORPORATES
VICINITY CENTRES – ASX VCX, SCENTRE GROUP – ASX SCG, WESTFIELD CORPORATION – ASX WFD, AMAZON.COM INCORPORATED, CITIGROUP PTY LTD, BUNNINGS GROUP LIMITED, CHARTER HALL RETAIL REIT – ASX CQR, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, CLSA AUSTRALIA PTY LTD, GOODMAN GROUP – ASX GMG, STOCKLAND – ASX SGP, INVESTA OFFICE FUND – ASX IOF, MIRVAC GROUP – ASX MGR, BWP TRUST – ASX BWP

Charter Hall tipped to pay $A250 million for Hastings

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Original article by Nick Lenaghan, Matthew Cranston
The Australian Financial Review – Page: 32 : 25-Jul-17

Charter Hall Group and Westpac have reported that they are in discussions with a view to the former buying Westpac’s Hastings Funds Management business. Hastings, which was started by former Carlton football player Mike Fitzpatrick, has an infrastructure portfolio valued at $A14.3 billion, with investments in assets such as the port of Newcastle and Perth Airport. Experts suggest that Charter Hall will have to pay about $A250 million for Hastings.

CORPORATES
CHARTER HALL GROUP – ASX CHC, WESTPAC BANKING CORPORATION – ASX WBC, HASTINGS FUNDS MANAGEMENT LIMITED, CARLTON FOOTBALL CLUB LIMITED, QIC LIMITED, AMP CAPITAL INVESTORS LIMITED, BROOKFIELD CAPITAL MANAGEMENT LIMITED