The recent decision by the Reserve Bank of Australia to increase official interest rates once again has pushed the share price of seven of the nation’s major real estate companies to 12-month lows, raising the question: Are they becoming even more attractive dividend plays?

Since the start of October, Arena REIT (ASX: ARF), Charter Hall Long WALE REIT (ASX: CLW), HomeCo Daily Needs REIT (ASX: HDN), Waypoint REIT (ASX: WPR), GPT Group Ltd (ASX: GPT), Vicinity Centres Ltd (ASX: VCX), and BWP Group Ltd (ASX: BWP) have all hit 12-month lows, with the dips concurrent with the RBA’s rates decision.

Low share prices translating to good yields

Each of these real estate companies is now trading with a healthy trailing dividend yield. The question will be, can they maintain it?

Examples of some of the yields include Charter Hall with a yield of 7.94% unfranked, HomeCo on 8.03% unfranked, and BWP on 5.49%.

Arena REIT is trading with a trailing yield of 7.76%. The company, in releasing its full-year results in August, gave guidance of 18 cents per share in distributions for the current financial year, which, at the current share price, would be a yield of 7.4%.

However, this estimate assumed the company would derive no income from the Arena properties occupied by Edge Early Learning Centres, which had entered administration.

Arena has subsequently told the ASX that all 27 of these properties are in the process of being leased to new owners; however, the deals are yet to settle.

As such, no dividend or guidance update has been made.

Interest rates a key focus

With real estate companies generally having large amounts of debt, their share prices could once again come under pressure if the RBA lifts interest rates again at its next meeting on 3 November.

ANZ Senior Economist Jasmine Zheng said this week a rate rise was “more likely than not”, while Betashares Chief Economist David Bassanese was also predicting a hike.

The RBA’s minutes from the meeting on October 6 indicated that further rate rises could be on the cards.

As they said:

Members discussed the challenges of judging how large the upside risks to inflation were or could become. They noted that the outlook for inflation would depend, among other things, on developments in the Middle East, the path of external demand, the extent of domestic capacity pressures and on how that influenced the pass-through of cost shocks and the evolution of inflation expectations. Members noted that it was possible these factors could continue to place upward pressure on inflation. Against that backdrop, members agreed that they would remain attentive to incoming data and the evolving assessment of the outlook and risks when making their decisions.

The post Dividend yields in focus as seven ASX real estate companies hit 12-month lows appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Mesoblast Ltd (ASX: MSB) share price is in focus today after the company reported a 44% jump in Ryoncil net revenue to US$28 million and an 85% improvement in net operating cash spend for the first fiscal quarter.

What did Mesoblast report?

• Net revenue from Ryoncil sales rose 44% to US$28 million (Q1 FY25: US$19 million)
• Net operating cash spend improved 85% to just US$2.3 million (prior period: US$14.9 million)
• Strong cash position: US$99 million at 30 September 2026
• Record new patient starts in September after seasonal July/August slowdown

What else do investors need to know?

Mesoblast attributes its revenue growth and improved cash position to greater penetration and adoption of Ryoncil across 54 onboarded treatment sites. Ryoncil is the first and only FDA-approved mesenchymal stromal cell therapy for children under 12 with steroid-refractory acute graft-versus-host disease.

The company is also focusing on disciplined capital management to support its commercial manufacturing and late-stage clinical programs. All reported results are preliminary and subject to audit.

What’s next for Mesoblast?

Looking ahead, Mesoblast plans to expand the reach of Ryoncil, further increasing adoption among eligible hospitals and clinics. The company is also progressing additional pipeline products targeting inflammatory diseases and is strengthening commercial partnerships overseas.

Disciplined capital use and investment in late-stage clinical trials remain priorities. Management is focused on building sustainable growth while maintaining strong cash reserves.

Mesoblast share price snapshot

Over the past 12 months, Mesoblast shares have declined 29%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Mesoblast reports Ryoncil revenue surge and improved cash spend appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

EBR Systems Ltd (ASX: EBR) disappointed investors this week when it announced it had implanted just 40 WiSE systems during the quarter, below its own forecast.

The company’s shares are now down almost 90% over a 12-month period, but according to the analyst teams at both Bell Potter and Morgans, there’s upside to be had from there.

It’s just that the two brokers differ wildly on how much upside there will be.

Quarterly report fell short of expectations

I’ll get to the specifics of their predictions shortly. First let’s have a closer look at what the company reported this week.

EBR Systems has developed the world’s only wireless cardiac pacing device for heart failure – the WiSE system – and is in the early stages of its commercial roll out.

In the third quarter the number of implantations was below previous quarters, with the company saying a change in management at its US operations, a change in strategy, and additional field training requirements led to the decline.

EBR systems said it was recruiting to build out its commercial team in the US, with numerous searches under way.

The company said:

EBR continues to refocus field management and activities around deeper utilisation within activated accounts, increased procedural frequency and strengthened field training and support. These initiatives are intended to strengthen U.S. commercial execution, with benefits expected to build progressively as additional field training is completed and account activity increases.

During the quarter EBR also completed the final tranche of a $150 million capital raising.

Shares looking cheap, or very cheap

Morgans said in its research note on the company that it understood a new sales strategy was needed.

They said:

Notably, WiSE adoption requires a sustained, high-touch sales effort, with representatives previously focused on prioritising the opening of new sites rather than supporting existing accounts and generating repeat procedures. Management is redirecting resources towards activated centres, strengthening territory accountability and changing its sales training model, with early feedback encouraging.

Morgans said there was little visibility of sales going forward, with the company reporting encouraging signs in early October, but giving no formal guidance.

They added:

We continue to see value in WiSE’s differentiated technology, clinical utility and substantial potential market opportunity. However, disappointing execution, greater commercial intensity and uncertain adoption trajectory warrant more conservative forecasts and a materially lower valuation. We see the potential for a recovery in commercial momentum, although the investment case now hinges on evidence of execution rather than the theoretical size of the opportunity.

Morgans lowered their price target from $1.95 to $1.20, which is still 757.1% higher than the current price of 14 cents.

Bell Potter, on the other hand, lowered their price target from 70 cents to 20 cents, which would be a 42.9% return if achieved.

EBR Systems is valued at $131 million.

The post This ASX biotech could rise 40% or 750%, depending on who you ask appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Scott Phillips.