Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Folkestone Education reported a strong fiscal 2018 financial result that was broadly in line with our expectations. Our earnings forecasts are largely unchanged, and we retain our fair value estimate at AUD 3.20 per unit. At the current market price of AUD 2.71, we still believe Folkestone is undervalued. Based on the market price and our earnings forecasts, the fiscal 2019 price/earnings ratio is 15 and the distribution yield is 5.9%, whereas our fair value implies a P/E ratio of 19 and a distr...
Folkestone Education Trust is an externally managed childcare REIT that owns 337 properties in Australia and 50 in New Zealand. Folkestone Education Trust is a property owner and does not operate the underlying childcare businesses. The typical property is freestanding, located in established residential and commercial locations, near medium- to high-traffic areas and close to public transport. Folkestone Education Trust also owns a 4.4% stake in Arena REIT, an ASX-listed childcare REIT. The chi...
Folkestone Education reported a strong fiscal 2018 financial result that was broadly in line with our expectations. Our earnings forecasts are largely unchanged, and we retain our fair value estimate at AUD 3.20 per unit. At the current market price of AUD 2.71, we still believe Folkestone is undervalued. Based on the market price and our earnings forecasts, the fiscal 2019 price/earnings ratio is 15 and the distribution yield is 5.9%, whereas our fair value implies a P/E ratio of 19 and a distr...
At the current price of AUD 2.71, no-moat-rated Folkestone Education units trade at a 15% discount to our AUD 3.20 fair value estimate. The current market price represents an attractive fiscal 2019 distribution yield of 6.3% although no franking credits are available as Folkestone is a trust and pays no corporate tax. We expect the trust to grow EPS at a CAGR of 4.5% over the next decade, with rental increases enhanced by new centre construction, underpinned by steady child care demand growth. T...
At the current price of AUD 2.71, no-moat-rated Folkestone Education units trade at a 15% discount to our AUD 3.20 fair value estimate. The current market price represents an attractive fiscal 2019 distribution yield of 6.3% although no franking credits are available as Folkestone is a trust and pays no corporate tax. We expect the trust to grow EPS at a CAGR of 4.5% over the next decade, with rental increases enhanced by new centre construction, underpinned by steady child care demand growth. T...
We have transferred coverage of Folkestone Education Trust to a new analyst and reviewed its economic moat rating and fair value estimate in the process. We have downgraded the moat rating from narrow to no-moat as we now believe the trust faces material long-term threats to its ability to sustain excess returns on investment capital. We have also increased the fair value estimate by 3% to AUD 3.20 per unit, largely reflecting the time-value-of-money impact on our financial model. At the current...
The rising price of child care, together with subdued wage growth and a nominally fixed child care rebate, negatively affected occupancy at child care centres towards the back end of fiscal 2017. Nevertheless, narrow-moat-rated Folkestone Education Trust increased rents at market reviews by the same rate as in the previous year, with virtually all tenants exercising their options to extend the lease. Despite the short-term challenges facing the industry until the new government funding package t...
Folkestone Education Trust is currently trading at an 11% discount to our fair value estimate of AUD 3.10, offering an estimated distribution yield of 6% in fiscal 2018. We ascribe a narrow moat to Folkestone due to high switching costs for child care operators to move premises. Also, the properties are rented to child care operators on long-term leases which generally require a five-year notice regarding the take-up of lease extension options. This provides the trust, as the landlord, high inco...
Folkestone Education Trust is currently trading at an 11% discount to our fair value estimate of AUD 3.10, offering an estimated distribution yield of 6% in fiscal 2018. We ascribe a narrow moat to Folkestone due to high switching costs for child care operators to move premises. Also, the properties are rented to child care operators on long-term leases which generally require a five-year notice regarding the take-up of lease extension options. This provides the trust, as the landlord, high inco...
Our fair value estimate for narrow moat-rated Folkestone Education Trust remains unchanged at AUD 3.10 per unit, which is trading at a 22% discount to our intrinsic assessment. Following the reported distributable income of AUD 18.7 million for the six months ended Dec. 31, 2016, the trust is on track to meet our estimate of distributable income of AUD 38.8 million for the full fiscal year 2017. The distribution guidance of AUD 14.2 cents per unit was also reiterated, in line with our estimate, ...
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
Low interest rates, both domestically and globally, have been driving investor demand for defensive income investments, including Australian property trusts. This demand has resulted in decreasing yields, but spreads over bank term deposits remain attractive. Narrow-moat Folkestone Education Trust is one of our top picks in the Australian REITs sector, with a forecast distribution yield of 5.6%, some 300 basis points above one-year Australian term deposits. At current prices, units are trading a...
Narrow moat-rated Folkestone Education Trust reported underlying earnings of AUD 0.14 per unit for fiscal 2016, in line with our estimate of AUD 0.141 per unit. Underlying earnings were up 5.3%, reflecting a full year’s income from the Folkestone Social Infrastructure Trust transaction (contributing AUD 2.8 million), like-for-like rent increases of 2.8%, a net addition of two centres to the portfolio and higher distributions from equities held in the securities portfolio. Distributions paid fo...
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