Abacus Property Group (ABG) AI Stock Analysis

• Market Cap: AU$1.08B
• Dividend Yield: 7.02%
• Average Volume (3M): 827.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: 51
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Diversified
• EPS (TTM): -0.12
• Shares Outstanding: 893,657,650
• 10 Day Avg. Volume: 738,918
• 30 Day Avg. Volume: 827,093
• PEG Ratio: -0.19
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.28
• Price Target Upside: 5.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: ―

Abacus Property Group faces significant financial challenges, with declining revenue and negative profitability impacting its overall score. The high leverage and potential liquidity concerns are critical risks. On the technical side, the stock shows stability, though momentum indicators are mixed. Valuation is less favorable due to a negative P/E ratio, but the high dividend yield offers some appeal. Overall, these factors suggest cautious optimism, with a need for financial improvements.

Abacus Property Group Business Overview & Revenue Model

Company Description

Abacus Property Group is a diversified Australian REIT with an investment portfolio concentrated in the Commercial property and Self Storage sectors. We invest capital in real estate opportunities to deliver superior long term returns and maximise securityholder value. Abacus is a strong asset backed, annuity style business model where capital is directed towards assets that provide potential for enhanced income growth and ultimately create value. Our people, market insight and repositioning capability together with strategic partnering are the key enablers of our strategy. Abacus is listed on the Australian Stock Exchange and is included in the S&P/ASX 200 Index and the FTSE EPRA NAREIT Global Real Estate Index Series. Abacus is comprised of Abacus Group Holdings Limited (the nominated parent entity), Abacus Group Projects Limited and Abacus Storage Operations Limited, Abacus Trust, Abacus Income Trust and Abacus Storage Property Trust. The shares and units in these entities are stapled together and trade as one security in ABP.

How the Company Makes Money

Abacus Property Group generates revenue through a diversified portfolio of property investments. The company's primary revenue streams include rental income from leasing its commercial, retail, and industrial properties to tenants. Additionally, ABG capitalizes on property value appreciation and strategic asset sales to realize capital gains. The company also engages in property development projects which contribute to earnings through the sale or leasing of newly developed properties. Abacus Property Group may form strategic partnerships with other real estate entities for joint ventures or co-investments, enhancing its ability to undertake large-scale projects and diversify its investment portfolio. The company's earnings are further supported by its focus on maintaining high occupancy rates and optimizing property management operations to drive cost efficiencies.

Abacus Property Group Financial Statement Overview

Summary

Abacus Property Group faces financial challenges with declining revenue and profitability, coupled with high leverage. The income statement shows negative margins, and the balance sheet indicates substantial leverage. Although there is stability in equity, cash flow trends suggest potential liquidity concerns.

Income Statement

The company's income statement shows a significant decline in total revenue from the previous year, with negative EBIT and EBITDA margins, indicating operational challenges. Additionally, the net profit margin has turned negative, reflecting a substantial net loss. This financial performance suggests potential issues in revenue generation and cost management.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating substantial leverage, which can pose risks during periods of financial instability. However, the company maintains a stable equity ratio, suggesting an adequate level of equity relative to its total assets. Return on equity has deteriorated significantly due to the net loss.

Cash Flow

The cash flow statement highlights declining free cash flow and operating cash flow, with a negative free cash flow growth rate. The operating cash flow to net income ratio is positive, indicating cash generation from operations despite the recorded net loss. The cash flow situation requires careful monitoring to ensure liquidity.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
217.67M	144.37M	147.07M	308.39M	242.44M	284.30M
	Gross Profit
175.16M	100.78M	105.19M	238.74M	180.74M	206.05M
	EBIT
142.67M	62.03M	58.55M	85.94M	169.45M	175.00M
	EBITDA
138.78M	-204.10M	-193.78M	89.24M	171.75M	176.80M
	Net Income Common Stockholders
-103.19M	-241.04M	25.50M	517.16M	369.41M	84.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.95M	23.56M	71.90M	176.50M	57.99M	127.31M
	Total Assets
2.59B	2.63B	5.61B	5.41B	4.06B	3.34B
	Total Debt
943.07M	939.33M	1.01B	1.71B	988.52M	1.01B
	Net Debt
902.12M	915.77M	934.61M	1.53B	930.53M	882.45M
	Total Liabilities
1.02B	1.02B	2.24B	1.91B	1.16B	1.14B
	Stockholders Equity
1.56B	1.61B	3.36B	3.50B	2.90B	2.20B
Cash Flow		Free Cash Flow
93.04M	75.95M	81.16M	154.52M	124.78M	205.40M
	Operating Cash Flow
46.10M	75.97M	89.46M	158.26M	131.60M	205.40M
	Investing Cash Flow
20.32M	46.00M	-295.51M	-823.50M	-511.66M	-578.67M
	Financing Cash Flow
-72.93M	-202.20M	101.42M	783.92M	310.76M	411.51M

Abacus Property Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABG, the sentiment is Neutral. The current price of 1.21 is below the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.16, and above the 200-day MA of 1.17, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ABG.

Abacus Property Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.82B	10.84	0.42%	8439.00%	5.74%	-20.95%
ABG	56 Neutral	AU$1.08B	―	-6.24%	7.02%	―	―
CNRAF		$7.24B	10.95	7.73%	5.23%	―	―
CTOUF		$5.80B	299.75	1.03%	2.51%	―	―
DEXSF		$4.92B	―	-9.22%	5.87%	―	―
GPTGF		$5.90B	―	-1.94%	5.16%	―	―
STKAF		$8.50B	28.53	4.54%	4.58%	―	―

Abacus Property Group Corporate Events

Abacus Property Group’s Trusts Set for MIT Qualification and Proposal Assessment

Abacus Property Group has announced that its trusts, Abacus Trust and Abacus Income Trust, are likely to qualify as withholding managed investment trusts starting from July 2025. This change will affect the tax withholding on distributions to non-residents, with a new rate of 15% for countries with an Exchange of Information agreement with Australia, while distributions to Australian-based securityholders remain unaffected. Additionally, the company is evaluating an indicative proposal from Ki Corporation Limited and Public Storage, with an independent board committee formed to assess its merits, although no conclusions have been reached yet.

Abacus Storage King Receives Acquisition Proposal from Ki and Public Storage

Abacus Property Group announced that Abacus Storage King has received a non-binding indicative proposal from Ki Corporation Limited and Public Storage to acquire all outstanding stapled securities not already held by Ki. The proposal includes a scheme of arrangement and trust scheme, with securityholders offered A$1.47 per stapled security. If successful, Public Storage would own approximately 50% of ASK’s securities, with the remainder held by Ki. The proposal is contingent on several conditions, including board approvals, regulatory clearances, and tax rulings. This acquisition could significantly impact Abacus’s operations and market positioning, as well as influence stakeholder interests.

Abacus Property Group Announces Substantial Holder Interest Change

Abacus Property Group has announced a change in the interests of its substantial holder, with Calculator Australia Pty Ltd transferring its stake to Ki Corporation Limited. This off-market transfer, valued at approximately $553 million, maintains the voting power of the substantial holder at 49.99%. The transaction reflects a strategic realignment within the group’s stakeholders, potentially impacting its governance and decision-making processes.

Abacus Property Group Updates Director’s Interest in Securities

Abacus Property Group announced a change in the director’s interest notice, highlighting adjustments in securities held by Director Steven Sewell. The notice reflects an increase in both Long-Term Incentive (LTI) and Short-Term Incentive (STI) rights, indicating a potential alignment of the director’s interests with the company’s long-term strategic goals. This change may influence the company’s governance and stakeholder confidence, as it underscores the director’s commitment to the company’s future growth and performance.

Abacus Property Group Issues Unquoted Equity Securities for Employee Incentive

Abacus Property Group announced the issuance of unquoted equity securities as part of an employee incentive scheme. This move, involving the allocation of LTI and STI deferral rights, is aimed at enhancing employee retention and aligning their interests with the company’s long-term goals, potentially impacting its operational dynamics and market positioning.