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VVR

Viva Energy REIT Earnings Meet Expectations

Tumul Sinha

Tumul is an experienced Equity Analyst with ASR Wealth Advisers. She holds a Master’s Degree in Finance from the University of Sydney. Her key industry verticals include Real Estate, Health Care and Technology.

Viva Energy RREIT Ltd (ASX: VVR) announced their FY19 results shortly before market open this morning. With distributable earnings of $111.7m and DPS of 14.54 cps, the results were roughly in line with consensus expectations. The company saw valuation uplift of $99.9m as at 31 December 2019 following an independent valuation. Meanwhile, gearing came in at 30.4%, on the low end of 30-45% target range. The results were driven by revenue growth from contracted annual rent increases, and lower net funding costs.

VVR-stock-price

Viva Energy REIT Ltd (ASX: VVR) announced their FY19 results shortly before market open this morning. The share price remained largely unaffected due to the results remaining in line with consensus expectations. (Credit: Geelong Advertiser)

Net assets increased by 11.8% to $1.78b, and the Net Asset Value (NAV) per security increased 4.1% to $2.29 per security. VVR had also guided towards distributable earnings growth of 3-3.75% in FY20, which is roughly in line with expectations.

The earnings of VVR are fairly predictable given the transparency of their asset portfolio and relatively stable income growth from contracted rent increases. As such, these results were largely expected.

As is expected with a company who reports earnings in line with expectations, the share price remained unchanged at $2.84 per share. The market expects relatively low risk to VVR achieving their dividend guidance for FY20 and are attracted to the dividend yield of the company which is currently around 5%.


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

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