Key points

• The ASX’s largest domestic pure play industrial REIT has made more acquisitions
• Centuria Industrial Reit is spending $132.4 million on six properties that come with an initial yield of 4%
• One of the properties, in Campbellfield, is an eight-hectare site where a brand new, sustainable industrial estate of 44,000 sqm will be delivered

---

Centuria Industrial Reit (ASX: CIP), a leading property business, announced the acquisition of six more properties today.

This business is the largest domestic pure play industrial real estate investment trust (REIT). It owns properties across Australia, predominately in urban locations.

Centuria Industrial Reit portfolio gets bigger

The REIT has announced $132.4 million of acquisitions to buy six high-quality assets in urban, infill markets.

It includes a five-unit Campbellfield development which will have a completion value of $104 million. This is an eight-hectare site in north Melbourne which has a short-term lease. When that lease expires, a project delivery agreement will take effect and a brand new, sustainable industrial estate of 44,000 sqm will be delivered.

Three of the acquisitions adjoin existing Centuria Industrial Reit assets, consolidating larger sites in land constrained markets.

Four of the properties are in Victoria, with one in NSW and one in Queensland. These locations are in high demand from e-commerce operators seeking close proximity to densely populated areas to improve supply chain efficiencies.

The total gross lettable area being acquired is around 41,000 sqm. The average initial yield across the acquisitions is 4% with a capitalisation rate of 4.2%. All of the properties are 100% occupied and the weighted average lease expiry (WALE) is 4.7 years.

Why did the REIT buy these properties?

Centuria Industrial Reit says that one of its strategic focuses is to provide investors with exposure to urban infill industrial locations that cater to last-mile e-commerce operators.

The business says that the urban infill locations of these eastern suburban acquisitions provide a favourable leasing outlook for rental growth, underpinned by near zero vacancy, buoyant tenant demand and limited land supply. These conditions provide opportunities to extract outsized returns from the assets, according to the REIT.

The fund manager of Centuria Industrial Reit, Jesse Curtis, said:

The purchase of this portfolio marks a strong start to 2022 and continues to demonstrate Centuria Industrial Reit’s management capability to source and execute on strategic acquisitions.

The Campbellfield site provides a rare, value-add opportunity to deliver a much-needed new and sustainable multi-unit industrial estate to attract high-quality tenant customers and premium rents.

The other acquisitions’ WALE and rent review structures provide rental upside opportunities. The acquisitions adjoining existing Centuria Industrial Reit-owned assets create future development sites of scale in desirable and land constrained urban infill markets.

These acquisitions increase Centuria Industrial Reit’s total portfolio to be worth around $4 billion and will be funded by new and existing debt facilities.

The post Centuria Industrial Reit (ASX:CIP) share price rises after six more acquisitions appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX dividend shares to buy
• Here are 2 top ASX dividend shares with attractive yields
• 2 excellent ASX 200 dividend shares to buy now
• Got money to invest for income? Here are 2 ASX dividend shares that could be buys

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3tEdVBv

Although the outlook for interest rates is improving, it still looks likely to be some time until rates are at a level sufficient to generate a passive income.

In light of this, dividend shares could be one of the better ways to achieve a passive income for a little while to come.

But which dividend shares should you buy? Two that analysts rate highly right now are listed below:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is this mining giant. It could be a top option due to its world class portfolio of operations globally and favourable commodity prices.

This is expected to underpin significant free cash flow in FY 2022. So much so, the team at Macquarie is forecasting very generous dividend payments this year and in the future. For example, iys analysts have pencilled in fully franked dividends of ~$3.86 per share in FY 2022 and ~$2.86 per share in FY 2023.

Based on the current BHP share price of $46.15, this will mean yields of 8.4% and 6.2%, respectively.

Macquarie also sees decent upside for BHP shares and has an outperform rating and $52.00 price target.

Macquarie Group Ltd (ASX: MQG)

Another ASX dividend share to consider is investment bank Macquarie. Although its shares have been very strong performers over the last 12 months, the team at Citi still see value in them and expect attractive yields in the near term.

The broker currently has a buy rating and $226.00 price target on the company’s shares. As for dividends, Citi is forecasting dividends per share of $6.42 in FY 2022 and then $6.10 in FY 2023.

Based on the current Macquarie share price of $207.61, this will mean yields of 3.1% and 2.9%, respectively, over the next couple of years.

The post 2 buy-rated ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Is the iron ore price set to slide?
• Does the BHP London share price perform the same as the company’s ASX:BHP listing?
• 5 things to watch on the ASX 200 on Monday
• The BHP (ASX:BHP) unification vote is next week and not everyone is happy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/326eyrX

There are a lot of options for investors to choose from on the ASX 200. Two that could be in the buy zone right now are listed below.

Here’s why analysts rate them as buys:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX 200 share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies responsible for many of the most popular pokie machines globally. In addition to this, the company has a growing digital business with a portfolio of hugely popular mobile games such as RAID: Shadow Legends. It is also in the process of acquiring UK listed real money gaming business Playtech for $3.9 billion.

Morgans is a fan of the company and currently has an add rating and $52.00 price target on its shares.

It commented: “We reiterate our ADD rating. In our opinion, the acquisition of PTEC gives ALL the opportunity to get to scale quickly in a market segment forecast to grow at a double-digit rate over the next five years. We expect the strong sector growth to be driven by a North America market growing at a CAGR of close to 50% as more US states liberalise and allow online iGaming and online sports betting.”

CSL Limited (ASX: CSL)

Another ASX 200 share that could be in the buy zone is CSL. It is one of the world’s leading biotechnology companies, comprising the CSL Behring and Seqirus businesses. Both are leaders in their respective fields – plasma therapies and vaccines.

Citi is bullish on the company, particularly following its Vifor Pharma acquisition announcement, and appears to see the weakness in the CSL share price as a buying opportunity for investors. It has a buy rating and $340.00 price target on its shares.

Citi said: “CSL has announced that the acquisition of Vifor Pharma – it is acquiring the company at CHF165.5 (US$179.25), a ~65% premium to where the stock was trading pre bid discussion and a ~37% premium to the three-month VWAP. We calculate the acquisition to be ~9% accretive to NPATA per share (NPAT before acquisition-related amortization) – a proxy for cash flow.”

The post 2 outstanding ASX 200 shares to buy this month according to analysts appeared first on The Motley Fool Australia.

More reading

• Why did the CSL (ASX:CSL) share price have such a lousy year in 2021?
• Top brokers name 3 ASX shares to buy next week
• 3 top ASX 200 shares to buy in January
• Experts tip the ASX sectors that are set to outperform in 2022
• Own CSL (ASX:CSL) shares? Here’s how the $17bn Vifor Pharma acquisition will boost its growth

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3A73x6h

Before 2020, Transurban Group (ASX: TCL) was an ASX 200 share that had a reputation as one of the most resilient ASX dividend shares on the market. With its primary business of providing inflation-indexed toll roads, it had the perfect business model for providing a rising stream of dividend income to its yield-hungry investors. Or at least, that’s what many people thought. As it turned out, a global pandemic was the Transurban dividend’s kryptonite.

Until 2020, Transurban was one of the ASX companies that managed to deliver an annual dividend increase every year since 2009. Back in ’09, Transurban forked out a total of 11 cents per share in dividends. 2019 saw the company dole out 61 cents per share. That’s a very healthy increase of 527% over that decade.

When the car tolls (or not)…

But alas, 2020 was a dire year for the company as many would-be motorists stopped commuting and travelling, stayed home and left Transurban’s network of tolled roads bare. To illustrate, the company’s last posted quarterly update for the 3 months to 30 September showed its overall daily traffic volumes came in at 34.5% below the same quarter in 2019.

So it was perhaps no surprise that Transurban only paid out a total of 31 cents per share in dividends in 2020. The picture was slightly brighter last year though, with the company upping its output to 36.5 cents per share. But even that metric is far below the company’s 2019 high watermark of 61 cents per share. As it stands today, the Transurban share price is offering a yield of 2.74%. That comes from its closing share price of $13.24 and the 36.5 cents per share in dividends it paid out over 2021.

So what does 2022 hold in store for income investors who own Transurban shares? Will it be a return to the glory days?

What are experts saying about Transurban’s dividend outlook?

Well, we don’t know for sure yet, of course. But we can take note of what some expert investors are predicting. As my Fool colleague James covered earlier this month, broker Morgans reckons the company will be able to keep ramping its dividends up, but in a slow-but-steady manner.

It is expecting the company to fork out 35 cents per share in FY2022, followed by payments worth 55.3 cents per share by FY2023. The latter would equate to a forward yield of 4.18% on current pricing. So it might be a while until Transurban’s glory days are back, if this analysis is to be believed. But no doubt shareholders will appreciate the progress the company has made on the income front since 2020 nonetheless.

The post Own Transurban (ASX:TCL) shares? Here’s what its 2022 dividends might look like appeared first on The Motley Fool Australia.

More reading

• 2 top ASX shares for a retirement portfolio
• Why analysts slapped buy ratings on these ASX shares
• Morgans names 2 ASX 200 dividend shares to buy
• Why Afterpay, Healius, IDP Education, and Transurban shares are falling
• ASX 200 (ASX:XJO) midday update: CBA rises, Sandfire’s MATSA update

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3I6cdfS