MM updates on DXS, NSR and ABB

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Question asked 28/10/2023

MM updates on DXS, NSR and ABB

Can MM please update on the following REITs: 1) DXS: The DXS share price has been hit hard lately, with DXS hitting almost decade-long lows today. I appreciate that ever-rising bond yields, and inflation and interest rate expectations etc., may be playing a part. Given this and following DXS's September Quarter update yesterday, can MM please update its views on and intentions for DXS. 2) NSR: A similar query for NSR which is almost hitting multi-year lows. Can MM please update its views following NSR's AGM update. Is MM seeing these stocks as great value/opportunities...or is there some concern sprinkled in at any or all of the updates, macro background and price action? Can MM please also provide an update on ABB given today's AGM presentation/trading update and recent price action, which, after looking pretty positive has perhaps broken down slightly over the last week and a half or so, albeit after a strong run. Thanks, Darren

Answer

Hi Darren,

We have looked at Dexus in a couple of questions today and our thoughts are similar with regard to NSR as yields and valuations weigh on investor sentiment:

MM is bullish bonds, bearish yields, into 2024 hence we believe the Real Estate Sector should find a low sooner rather than later but we want to see some catalyst to see us increase our exposure at this stage of the cycle.

Aussie Broadband (ABB) briefly traded to 12-month highs last week before succumbing to the broader market sell off. Their AGM update was in line, if not a slight beat to expectations and the company maintained guidance which looks increasingly conservative given the 40k connections added in Q1. The share price has consolidated around $3.90 and we remain long and bullish.

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National Storage REIT (NSR)

LAST UPDATED 27/10/2023 10:59

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