CNI -5.92%: the property fund manager released FY23 results today which were largely in line with expectations, however shares slumped on soft guidance. Operating profit of $115.6m and Operating EPS of 14.5c were preannounced, so no surprises there. Assets Under Management, also released last month, fell -0.9% to $21b. The company noted $811m of transactions were settled in the year with just $34m yet to settle as at 30 June which compares to $403m at the end of FY22. This drop highlights the lack of volume moving through the real estate market which weighs on the Fund Manager’s earnings.
Interest costs were also slightly higher than expected, and given where rates have moved they will likely weigh on FY24 results as well. As a consequence, guidance was soft, looking for Operating EPS of 11.5-12c vs 13.5c expected, and Dividends of 10c, 10% short of expectations. We expect some of these headwinds to ease, and see this guidance as likely to be conservative.
MM see’s value in CNI, but momentum is clearly against us
Add To Hit List
