- FY20 FFO of 8.2cpu (from 8.7cpu in prior year). Strong 26.0% growth in FFO was offset by the issue of new units to fund acquisitions and internalisation of management operations.
- COVID-19 impacts were very marginal - $6,500 of rent was waived. A further $0.4M of rent deferred and expected to be collected by end of the year.
- Management guidance for FY21 earnings to be around 7.2 – 7.6cpu and distributions of 7.2 cpu, implying a 6.9% yield on current price.
- Recommendation upgraded to Accumulate (previously Hold). We see value at current price levels, however further upside is likely to come in FY22 onwards once acquisitions are fully included. Upside potential also once Botanicca 9 is leased.
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