Yovich & Co. Market Update - 29 April 2020
Apr 29, 2020 | Commentary
29 April 2020
Now that we have moved to level 3 as from 11.59pm 27 April, we at Yovich & Co being an essential service continue to service clients via email or phone calls, from their homes. No face to face meetings will be held at the office. COVID-19 has not affected any services Yovich & Co provide. Remember to keep up with social distancing, stay safe and shop local.
New Zealand Equities
In summary, last week the NZ50G saw 41 companies on the downside, 1 remained unchanged and 8 on the upside. The NZ50G was down 8%, while so far this week Tuesday was up 3.26 and Wednesday down 0.87% as investors try to navigate the post COVID-19 world. Yovich & Co are advising that if clients’ goals and time frame have not changed then to stay the investment course. If at all concerned please contact your adviser.
Sits in the list of Yovich & Co’s most preferred Listed Property Companies (LPC). Argosy has recorded a full year (31 March 2020) portfolio revaluation gain of $61.7 million, a 3.6% increase, since the desk-top valuations undertaken in September 2019 ($50.8m). Bring total portfolio valuation to $1.78b. This unaudited revaluation gain results in an increase in NTA to $1.30 as at 31 March 2020. The greatest gains are split by location and sector, with Auckland gaining $49.7m, industrial sector gaining $53.4m. Current Share Price: $1.065, Price/NTA: 0.83, Gross dividend yield: 7.02%.
Has announced a capital raise to provide funding flexibility to further growth strategy. The Capital raise will be done via a $85m underwritten placement and Share Purchase Plan (SPP) for up to $15m. Along with strategy growth the funds will be used to reduce LVR ratio from 41.8% to 30.9%. Investors as of April 28 are eligible to purchase up to $50,000 through the SPP. The SPP opens May 5 and closes May 20, SPP price will be announced May 15. FY20 cash dividend guidance is 7.60 cents per share. Current Share Price: $1.77, Price/NTA: 1.04, EPS: 15.21, Gross dividend yield: 5.43%.
Early April an additional debt facility of $70m for the next 18 months was granted, in order to provide additional financial flexibility. Total facility limits are now $420m. Oceania is in a strong financial position with current drawn debt of $321m, $12.1 million of cash and therefore $110.9 million of undrawn net debt headroom. Oceania had experienced good unit sales at its retirement villages prior to Level 4, due to level 4 restrictions sales were unable to settle, sales and settlements are to recommence in level 3. Aged care business has also proven resilient, despite the restrictions of the Alert Level 4 lockdown, with new admissions taken and stable occupancy levels recorded during the period. Current Share Price: $0.76, Price/NTA: 0.76, EPS: 6.67, PE Ratio: 11.54, Gross dividend yield: 6.63%.
Disclaimer: This publication has been prepared for your general information. While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken for any errors or omissions. This publication does not constitute financial or insurance product advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. No part of this publication may be reproduced without prior written permission from our company. Disclosure statements relating to the financial advisers associated with this newsletter are available on request and free of charge.
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