Morgans assesses APN Convenience Retail REIT's FY21 result was in-line with guidance. An uplift in funds from operations (FFO) was mainly considered due to a 26.1% increase in net property income (NPI).

FFO and DPS guidance is set at 22.9 cents, up 4.6% on the previous corresponding period. Management announced an underwritten $45m institutional placement and $5m share purchase plan (SPP) to fund acquisitions. 

The broker adjusts forecasts to reflect both new acquisitions and the capital raising and lowers its target price to $4.05 from $4.15 and retains its Add rating.

Sector: Real Estate.

Target price is $4.05.Current Price is $3.66. Difference: $0.39 - (brackets indicate current price is over target). If AQR meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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