A big week for listed A-REITs

It has been a big week for listed A-REITs as the February reporting season draws to an end, and a batch of results were released. Whilst most A-RETIs maintained their guidance for FY18, Charter Hall Retail REIT (ASX: CQR), Convenience Retail REIT (ASX: CRR) and Charter Hall Group (ASX: CHC) all increased their expectations. Other A-REITs which reported, include GDI, IOF, IDR, GOZ, SCG, SGP, ARF and VVR - all maintaining their FY18 guidance. Click Here for Reporting Season – Week 3.

It was interesting to see Westfield Corporation (ASX: WFD) report modest results with the real focus being on the proposed takeover of WFD by Unibail- Rodamco, announced back in December 2017.

At the time, the takeover of WFD was valued at $10.01, however a fall in Unibail-Rodamco’s stock price has reduced the implied value of the takeover to under $9.00. WFD management is standing by the strategic rationale for the takeover and will release an independent expert’s report in April 2018 with a view to completing the transaction by June 2018. Until then, WFD’s stock price is pretty much linked to Unibail-Rodamco’s price however, a degree of uncertainty is expected due to Unibail-Rodamco’s price movements, currency impacts and with WFD unwilling to provide FFO forecasts for FY18.