Over the last 12 months the Pinnacle Investment Management Group Ltd (ASX: PNI) share price has gone up by around 170%.

If readers haven’t heard of Pinnacle before, it’s a business that is a multi-affiliate investment management outfit. It aims to establish, grow and support a diverse stable of “world-class” investment management firms. It provides distribution and other support services to those affiliates.

There are a number of different fund managers in the portfolio such as Plato, Coolabah, Firetrail, Solaris, Spheria, Antipodes and Metrics.

Growth in FY21

The business has experienced significant funds under management (FUM) growth during FY21 in the financial year to 30 April 2021, according to the last update.

Total affiliate FUM at 30 April 2021 was $84.9 billion. That was an increase of 20.4% from 31 December 2020, where it had $70.5 billion. It was also an increase of 44.6% from $58.7 billion at 30 June 2020. The April 2021 FUM number included $19.3 billion of retail FUM, up from $16.7 million at 31 December 2020.

Pinnacle has seen FUM grow from a combination of both investment performance and net inflows. In the four months to 30 April 2021, net inflows were $9.9 billion. That included $1.8 billion of retail inflows.

The ASX share commented about affiliate investment performance, saying that it’s seeing the managers and strategies continuing to deliver performance to expectations (or better), though there are short-term challenges at a couple of affiliates.

Performance fees

In some years, performance fees can play a sizeable part in the overall profit in a given financial year.

Earlier this month, Pinnacle advised that seven affiliates have crystallised performance fees for FY21, totalling around $86 million, of which $40.7 million was crystallised in the second half of FY21.

Pinnacle’s net share of these performance fees, after tax payable by the affiliates on that revenue, was around $19.5 million, of which $8.4 million was earned in the second half of FY21.

It also told investors that it expects the net return on its principal investments for FY21 to be in the order of $2.2 million. That includes $2.3 million of dividends and distributions received.

Pinnacle expects to release information about its funds under management (FUM) and inflows for the year to 30 June 2021 are scheduled to be released on 5 August 2021.

What could happen next to the Pinnacle share price?

Pinnacle is currently rated as a buy, by a few different brokers including Macquarie Group Ltd (ASX: MQG). However, the price target is $12.28, which is roughly where it is now. Macquarie’s latest rating means it doesn’t expect much price growth over the next 12 months.

Even so, the broker believes Pinnacle has good growth possibilities with its rising FUM and the potential to add more affiliates to the portfolio.

The post The Pinnacle (ASX:PNI) share price has gone up around 170% over the last 12 months appeared first on The Motley Fool Australia.

More reading

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• 2 exciting ASX growth shares that might be worth buying

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 owns shares of and 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.

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The Gefen International AI (ASX: GFN) share price had a very disappointing start to life on the ASX boards.

On Wednesday, the technology company’s shares ended the day 19.5% lower than their listing price at 80.5 cents.

The Gefen International AI IPO

Gefen International AI shares commenced trading on the Australian share market yesterday following the successful completion of its oversubscribed initial public offering (IPO).

The company raised gross proceeds of $25 million at an issue price of $1.00 per share. Management advised that the IPO was underpinned by a high-quality shareholder base of institutional and retail investors. This includes strong support from existing Gefen shareholders such as Regal Funds Management, Ellerston Capital, and Perennial.

With approximately 127.9 million shares on issue, Gefen International AI had a market capitalisation of $127.9 million upon listing. This has now reduced to just over $100 million following its disappointing first day of trade.

What does the company do?

Gefen International AI describes itself as a platform provider that empowers and transforms agent-based networks. It has developed a disruptive platform for regulation-heavy industries in which carriers use agents to sell complex products to customers.

It generates revenue from two key sources. The first is through recurring subscription license fees paid by carriers. The second is transactional agent solutions fees paid as commissions by carriers from sales generated through the independent agent network.

Management notes that it operates in a large and growing global market which was worth an estimated $358 billion in 2020 and is expected to grow to $462 billion by 2023. This compares to the revenue of $16.4 million that it achieved in 2020.

Gefen’s Co-Founder and Co-CEO, Orni Daniel, said: “We are very pleased with the overwhelmingly positive response our IPO has received. Gefen gives investors access to a unique opportunity that has significant potential for growth across global agent-based industries.”

“With the funds raised in the IPO, we will be able to implement additional upgrades to our platform and invest in the marketing and growth initiatives that will help us continue to scale.”

The post Gefen International AI (ASX:GFN) share price crashes 19% after IPO appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
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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 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.

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The big four banks continue to be very popular with investors. This is particularly the case for those in search of income in a low interest rate environment.

In light of this, I thought I would take a look at the Westpac Banking Corp (ASX: WBC) dividend and see what the market is expecting from Australia’s oldest bank.

The Westpac dividend

The good news is that despite the Westpac share price rising an impressive 26% year to date, analysts still believe there are generous yields on offer in the future.

For example, according to a note out of Goldman Sachs, its analysts are expecting fully franked Westpac dividends of $1.16 per share in FY 2021, $1.24 per share in FY 2022, and then $1.32 per share in FY 2023.

Based on the latest Westpac share price of $24.76, this will mean yields of 4.7%, 5%, and 5.3%, respectively, over the next three years.

Goldman Sachs also has a buy rating and $29.03 price target on Westpac shares. This implies potential upside of 17% over the next 12 months. As a result, if you include the Westpac dividend, the total potential return stretches well beyond 20% for investors.

What else are analysts saying?

Analysts at Citi are positive on the Westpac share price and believe it is great value at the current level. They are also forecasting generous dividend yields in the coming years.

According to a recent note, the broker is forecasting fully franked dividends per share of 116 cents, 118 cents, and 132 cents through to FY 2023. This will mean yields of 4.7%, 4.75%, and 5.3%, respectively, over the forecast period.

And just like Goldman Sachs, Citi believes there’s more to get excited about than just the Westpac dividend.

It has slapped a price target of $30.00 on the bank’s shares. This will mean a potential return of approximately 21% for the Westpac share price over the next 12 months.

The post Should you buy Westpac (ASX:WBC) shares in July for the dividend yield? appeared first on The Motley Fool Australia.

More reading

• ANZ’s (ASX:ANZ) $1.5bn buyback puts other ASX 200 banks under capital return spotlight
• Do ASX 200 banks share same BNPL ambitions as Westpac (ASX: WBC)?
• 2 high yield fully franked ASX dividend shares rated as buys
• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher
• The Westpac (ASX:WBC) share price has fallen 8% over the last 30 days

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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.

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Are you looking for some quality ASX dividend shares to add to your income portfolio? Then you might want to look at the ones listed below.

Here’s what you need to know about these buy-rated ASX dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is Coles. It could be a top option due to its strong market position, defensive qualities, and positive growth outlook. The latter is being underpinned by its long track record of same store sales growth and its focus on automation.

Another positive is the supermarket giant’s favourable dividend policy. This sees the company aim to pay out upwards of 90% of its earnings to shareholders each year as dividends.

One broker that is a fan of Coles is Goldman Sachs. It currently has a buy rating and $19.40 price target on its shares. The broker is also forecasting fully franked dividends of 62 cents per share in FY 2021 and then 67 cents per share in FY 2022.

Based on the current Coles share price of $17.28, this represents yields of 3.6% and 3.9%, respectively, over the next two years.

Transurban Group (ASX: TCL)

Another ASX dividend share to consider is Transurban. It is a toll road operator with a portfolio of important roads throughout Australia and North America.

Although traffic has been soft on its roads during the pandemic, it is starting to bounce back. And as traffic levels recover, so too will its distributions. This could make it worth being patient with the company.

Ord Minnett certainly thinks it is worth it and is forecasting a rebound in dividend payments next year. The broker expects dividends per share of 37 cents in FY 2021 and then 58 cents in FY 2022. Based on the current Transurban share price of $14.10, this will mean yields of 2.6% and 4.1% over the next two years.

Ord Minnett has an outperform rating and $16.00 price target on its shares.

The post 2 quality ASX dividend shares that could be buys appeared first on The Motley Fool Australia.

More reading

• 2 defensive ASX 200 shares that brokers rate as ‘buys’ this Monday
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• 2 excellent ASX dividend shares rated as buys
• 2 buy-rated ASX dividend shares
• 2 top ASX dividend shares with BIG yields

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 owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form and stormed notably higher. The benchmark index rose 0.8% to 7,308.7 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to continue its ascent on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 70 points or 1% higher this morning. This follows a strong night of trade on Wall Street, which saw the Dow Jones rise 0.8%, the S&P 500 climb 0.8%, and the Nasdaq jump 0.9%.

Oil prices jump

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be charging higher today after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 4.5% to US$70.24 a barrel and the Brent crude oil price has risen 4.1% to US$72.20 a barrel. An improvement in risk appetite provided support for oil prices despite US data showing an unexpected rise in oil inventories.

Newcrest update

The Newcrest Mining Ltd (ASX: NCM) share price will be one to watch on Thursday. This morning the gold mining giant is scheduled to release its fourth quarter and full year update. Newcrest is aiming to achieve production of 1,950koz to 2,150koz for the full year. All eyes will be on its all-in sustaining cost (AISC), which stood at of $891 per ounce in the third quarter.

Gold price falls

It could be a tough day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price tumbled overnight. According to CNBC, the spot gold price is down 0.4% to US$1,804 an ounce. The precious metal dropped to a one-week low after risk appetite increased and safe haven assets fell out of favour.

South32 rated as a buy

The South32 Ltd (ASX: S32) share price remains great value according to analysts at Goldman Sachs. Despite a mixed end to the financial year, the broker has retained its conviction buy rating but lowered its price target slightly to $3.70. It has retained its buy rating on valuation grounds, its strong free cash flow outlook, and the prospect of increased capital returns.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Altium drops, Kogan falls
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• Why Credit Corp, Oil Search, Pilbara Minerals, & PointsBet are charging higher
• Cimic (ASX:CIM) share price races 5% higher on financial result

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 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.

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If you’re looking for retirement portfolio options, then you may want to look at the shares listed below.

One leading broker believes these ASX shares are in the buy zone at the current level. Here’s what you need to know about them:

Lifestyle Communities Limited (ASX: LIC)

The first ASX share for retirees to look at is actually a company which focuses on retirement and semi-retirement living.

Lifestyle Communities builds, owns, and operates land lease communities which provide affordable housing options to Australians over 50. Its land lease model allows people to downsize their family home to free up equity in retirement whilst enjoying resort style living.

Goldman Sachs is a big fan of the company and believes it is well-placed to benefit from strengthening demand for land lease as the ageing population looks to enhance retirement by releasing equity from the family home.

The broker suspects that upwards of 5% of people over 65 could be living in a land lease community in the medium term. This is up from its current estimate of 2% to 3%.

Goldman has a conviction buy rating and $16.50 price target on the company’s shares. The broker is also forecasting consistent dividend growth over the next few years.

Telstra Corporation Ltd (ASX: TLS)

Another ASX share that could be a top option for a retirement portfolio is Telstra.

The last few years have been very disappointing for shareholders. They have watched on as its earnings and dividends have declined materially, dragging the Telstra share price down with them.

However, thanks to the success of its T22 strategy and the easing NBN headwind, Telstra is now on the cusp of a return to growth. Not only does this mean that the dividend cuts are likely to be over, but dividend increases are a distinct possibility in the coming years.

Analysts at Goldman Sachs expect this to be the case. They are currently forecasting fully franked dividends of 16 cents per share through to FY 2023 before an increase to 18 cents per share in FY 2024. Based on the current Telstra share price of $3.73, this will mean yields of 4.3% and then 4.8%.

Goldman Sachs currently has a buy rating and $4.20 price target on its shares.

The post Top broker name 2 ASX shares for retirees appeared first on The Motley Fool Australia.

More reading

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• Lockdowns hurt, ASX falls, Wesfarmers climbs, and the Aussie set to fall? Scott Phillips on Nine’s Late News
• Is the Telstra (ASX:TLS) share price good value amid acquisition news?
• ASX 200 drops, Telstra falls, Altium declines

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 owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) went up by almost 0.8% today to 7,309 points.

Here are some of the highlights from the ASX:

Kogan.com Ltd (ASX: KGN)

The Kogan share price dropped around 1.5% today after giving investors a business update for FY21.

It said there had been improvement of gross sales, gross profit and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in June 2021 compared to April and May.

Kogan revealed its growth for those statistics against FY20. Gross sales increased 52.5% to around $1.2 billion. The gross profit increased 61% to $203.7 million. Adjusted EBITDA also rose 23.1% to $61.1 million.

Active customers increased by over 46% since 30 June 2020 to 3.2 million for Kogan.com. Mighty Ape finished FY21 with 764,000 active customers.

Total inventories was $228.1 million at the year end with a net cash position of $12.8 million.

After again acknowledging its inventory issues in the last few months, Kogan said its efforts to bring down inventory levels have come a long way and is approaching the right level for the company. It’s expecting improved efficiency from now on.

Kogan CEO and Founder Ruslan Kogan said:

More customers than ever are turning to Kogan.com for convenience, range and price. We are proud to have been able to service more than 3 million Australians during the challenging year behind us, all while expanding our warehousing operations, enhancing Kogan First membership rewards, and rolling out new exciting projects that will further improve delivery times and customer experience in the near future.

Altium Limited (ASX: ALU)

The Altium share price fell around 5% today. It was the worst performer in the ASX 200.

According to reporting by the Australian Financial Review, the interested bidder (Autodesk) has decided to end its talks with Altium regarding a potential takeover.

Autodesk gave an offer of $38.50 per share, as well as a verbal bid of $40 per share. But Altium wasn’t interested.

The Autodesk CEO said:

While we did verbally improve our initial proposal, we were unable to agree on the basis to advance discussions.

Cimic Group Ltd (ASX: CIM)

One of the best performers in the ASX 200 was construction and engineering business Cimic. It rose 4.5% after delivering its FY21 half-year result.

The company said that it generated net profit after tax (NPAT) of $208 million in the first six months of its FY21. It saw revenue growth of 10.6% to $7.1 billion. It saw “strong” revenue growth in its Australian construction and services.

Cimic also said that it generated free operating cash flow (pre-factoring) of $51 million in the second quarter of FY21. It also said that its HY21 free operating cash flow pre-factoring improved by $166 million compared to the first half of FY20.

Its factoring balance has improved from $976 million at December 2020 to $733 million at June 2021.

Cimic revealed that it had $10.4 billion of new work awarded in the first half of FY21. The biggest element of that was the North East Link primary package in Victoria for $4 billion.

The Cimic board declared an interim dividend of $0.42 per share. The balance sheet finished the period with net debt with $272.2 million.

The ASX 200 business believes the outlook across its core businesses remains positive. It pointed to numerous stimulus packages have been announced by governments in core construction and service markets.

Cimic’s FY21 net profit after tax (NPAT) guidance was maintained for a range of $400 million to $430 million.

The post ASX 200 rises, Altium drops, Kogan falls appeared first on The Motley Fool Australia.

More reading

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• Why Altium, Beach, Domino’s, & Piedmont Lithium are tumbling lower
• Top broker delivers verdict on Santos (ASX:STO) merger with Oil Search (ASX:OSH)
• Cimic (ASX:CIM) share price races 5% higher on financial result
• Macquarie picks the best ASX shares to buy for the August reporting season

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If you’re looking for some growth shares to add to your portfolio, then you might want to look at the ones below.

Here’s what you need to know about these highly rated ASX growth shares:

Afterpay Ltd (ASX: APT)

The first ASX growth to look at is Afterpay. This leading buy now pay later (BNPL) focused payments company has been growing at a rapid rate over the last few years. This is thanks to the increasing popularity of the BNPL payment method and its successful international expansion.

The good news is that it still has a very long runway for growth in both existing and new markets. The former includes a $5 trillion opportunity in the United States which is being supported by the launch of its pay anywhere solution. Whereas the latter includes its recent expansion into Europe and its Asia plans.

In addition to this, the upcoming launch of its Money by Afterpay app is expected to be a big boost to its ANZ business. In fact, analysts at Morgan Stanley believe it could help Afterpay double its revenue in Australia.

Overall, the broker believes the company is well-positioned for growth. As a result, this week the broker retained its overweight rating and $145.00 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share to look at is TechnologyOne. It is Australia’s largest enterprise software company, providing a global software as a service (SaaS) ERP solution.

Management notes that this integrated enterprise SaaS solution is available on any device, anywhere and anytime and is easy to use. At the last count, over 1,200 leading corporations, government agencies, local councils and universities were powered by its software.

TechnologyOne has been growing its recurring revenues at a strong rate in recent years thanks to the success of this SaaS offering. However, its growth is still only get started. Management is targeting annualised recurring revenue (ARR) of over $500 million by FY 2026. This is more than double its current ARR of $233 million.

Morgans is bullish on the company and believes it could achieve its ARR targets. As a result, the broker has put an add rating and $10.00 price target on its shares.

The post Why analysts rate Afterpay (ASX:APT) and this ASX growth share as buys appeared first on The Motley Fool Australia.

More reading

• The Zip (ASX:Z1P) share price is the best performing BNPL of 2021
• Top brokers name 3 ASX shares to buy today
• Macquarie picks the best ASX shares to buy for the August reporting season
• The 2 best shares to hang your hat on: fund managers
• ASX 200 drops, ANZ up and Afterpay rises

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 shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Rio Tinto Limited (ASX: RIO) share price will be one to watch on Thursday.

This follows the release of an announcement after the market close.

Why is the Rio Tinto share price on watch?

Investors may want to keep an eye on the Rio Tinto share price tomorrow following the release of an update on its Richards Bay Minerals (RBM) operation in South Africa.

South Africa has been battling riots this month following the jailing of former president Jacob Zuma for failing to appear at a corruption inquiry.

According to today’s update, the RBM operation has been forced to shut one of its four furnaces due to the depletion of available feedstock at the plant. The company advised that this is the result of mining operations being halted following an escalation in the security situation at the operations which significantly hampered the mine’s ability to operate safely.

The four furnaces at RBM are dependent on a stockpile of feedstock, which is being steadily depleted. However, the decision to shut one furnace will reduce the call on the stockpile and limit the long-term impacts of a shutdown on the RBM’s furnaces.

Nevertheless, management notes that it declared Force Majeure on its customer contracts at RBM on 30 June 2021.

“Major impact”

Rio Tinto’s Chief Executive of Minerals, Sinead Kaufman, said: “Shutting a furnace has a major impact on the business and broader community and it not a decision we have taken lightly.”

“However, we will not put production ahead of the safety of our people and there are still fundamental criteria that must be met before we can resume operations in a sustainable manner.”

“We continue to work with national and provincial governments as well as community structures to find a lasting solution to the current situation so that operations can resume as soon as it is possible to safely do so,” she added.

What’s next?

The release explains that RBM will regularly reassess the situation to make further decisions on any potential restart or the shutting of the other furnaces. This will depend on when the safety and security position improves.

Until then, all operations at RBM remain halted until further notice.

The post Rio Tinto (ASX:RIO) share price on watch following South Africa update appeared first on The Motley Fool Australia.

More reading

• The 2 best shares to hang your hat on: fund managers
• Leading brokers name 3 ASX shares to sell today
• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher
• Rio Tinto (ASX:RIO) share price on watch after broker upgrade
• 5 things to watch on the ASX 200 on Monday

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 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.

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ASX real estate shares with a dominant focus on providing office space have weathered the past week well. Surprisingly well, some might say.

COVID-19 cases continue to rise across much of Australia, with New South Wales reporting 110 new infections today.

The new wave of the pandemic has now sent more than half of Australia’s population into lockdown. Including my own home state of South Australia. That hasn’t impacted my own work life much, as I’ve long worked from a home office.

But many thousands of others across Australia have been barred from returning to their office space until further notice. We’ll look at how that’s impacted the price of 4 office focused ASX real estate shares below.

But first…

COVID spreading at work

As msn.com reports, almost 10% of New South Wales COVID cases in the new outbreak (15 June through to 19 July) caught the virus at their work place.

According to NSW health authorities, 123 people have contracted COVID at work:

[A] spokesperson for NSW Health said it was “expected there will be additional direct workplace transmission events reported from within the cases in the outbreak to date.”

“Workplaces are a key setting where people are exposed to others outside their households, often for prolonged periods, and can transmit the virus.”

And this, from the Australian Financial Review:

NSW authorities are pleading with employers to allow workers to work from home… Employers were warned new $10,000 fines for forcing people into the office would come into effect from Wednesday.

NSW Premier Gladys Berejiklian said that, “The two biggest risks to getting or transmitting COVID are workplaces or the household. We cannot stress that enough.”

Now that’s not all office space we’re talking about here. Some of the infected workers are undoubtedly employed in other work settings deemed essential, such as grocery stores, servos and medical facilities.

But still, office focused ASX real estate shares have held up remarkably well in the face of new lockdowns.

How have these ASX real estate shares performed?

For the purposes of this article, we’ll look at 4 ASX real estate shares with a strong focus on the office market. Namely:

• Centuria Office REIT (ASX: COF) is an Australia based pure play office real estate investment trust (REIT).
• Dexus Property Group (ASX: DXS) makes much of its earnings from rental income received from its directly-owned Australian property portfolio. That portfolio is weighted towards the CBD office markets along the eastern seaboard.
• Australian Unity Office Fund (ASX: AOF) invests in Australian office property and related assets.
• Victory Offices Ltd (ASX: VOL) provides serviced office packages and co-working spaces.

And as a benchmark we’ll use the All Ordinaries Index (ASX: XAO).

Over the past month the All Ords is down 0.02% and the index has lost 0.64% over the past 5 trading days.

So how have our ASX real estate shares held up in comparison?

The Centuria Office REIT share price has gained 5.56% over the past month and it’s down 0.80% over the past 5 days. That handily beats the All Ords over the month and is closely aligned for the 5 days.

The Dexus share price is down 4.33% over the month, but it’s up 1.99% in the last 5 trading days. So below the benchmark over the month, but beating it in 5 days.

The Australian Unity Office share price trails the All Ords in both timeframes, down 7.14% over the past month and down 1.27% over the last 5 days.

Lastly, the Victory Offices share price, while down 5.56% over the last month, is up 6.25% in the past 5 days.

Foolish takeaway

Though the results are mixed, clearly these office focused ASX real estate shares haven’t taken a beating from new stay at home orders sweeping Australia.

That could be because all 4 of the above ASX real estate shares are still trading well below their 21 February 2020 levels, the day the viral market meltdown commenced.

The Centuria share price remains down 24% since then, the Dexus share price is down 21%, the Australian Unity Office share price is down 22%, and the Victory Offices share price is down a painful 88%.

Perhaps after the panic selling in February and March 2020, investors are now looking beyond the renewed short and possible mid-term setbacks of rolling lockdowns to the eventual return of office work and the long-term potential value of these ASX real estate shares’ underlying assets.

The post Office focused ASX real estate shares appear unfazed by new COVID wave appeared first on The Motley Fool Australia.

More reading

• Dexus (ASX:DXS) share price dips despite positive update

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.

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