Australian Unity Office Fund (AOF) AI Stock Analysis

• Market Cap: AU$79.73M
• Dividend Yield: 11.55%
• Average Volume (3M): 165.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -7.19%
• EPS Growth: -94.37%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 65
• Industry: REIT - Office
• EPS (TTM): -0.38
• Shares Outstanding: 164,383,440
• 10 Day Avg. Volume: 125,231
• 30 Day Avg. Volume: 165,405
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.19
• 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$0.49
• Price Target Upside: 2.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

The overall stock score reflects significant financial challenges with declining revenue and profitability, balanced by a strong balance sheet with no debt and solid cash flow management. Technical analysis suggests a neutral outlook without strong momentum, while valuation concerns arise from a negative P/E ratio, partially offset by a high dividend yield.

Australian Unity Office Fund Business Overview & Revenue Model

Company Description

Australian Unity Office Fund (AOF) is an Australian-based real estate investment trust (REIT) that primarily invests in commercial office properties across various metropolitan and regional markets in Australia. The fund focuses on acquiring, managing, and enhancing high-quality office buildings to deliver stable income and capital growth to its investors. AOF is committed to maintaining a diversified portfolio that includes properties with strong tenant covenants and attractive lease profiles.

How the Company Makes Money

AOF generates revenue primarily through rental income from its portfolio of office properties. The company leases these properties to a variety of tenants, including government entities, large corporations, and small businesses, ensuring a stable and diversified income stream. AOF also aims to enhance its revenue by actively managing its assets to improve occupancy rates, negotiating favorable lease terms, and undertaking strategic capital improvements to increase property values. Additionally, the fund may occasionally realize gains through the strategic sale of properties that have appreciated in value. These activities are supported by partnerships with property management firms and leasing agents, which help optimize the performance and occupancy of AOF's assets.

Australian Unity Office Fund Financial Statement Overview

Summary

The company's financial performance is challenged by declining revenue and profitability issues, with a negative net profit margin. However, the balance sheet is robust with no debt, and cash flow management is strong, which provides some stability.

Income Statement

The income statement shows a declining trend in total revenue from 2019 to 2024, with a significant drop in gross profit and net income in recent years. The net profit margin has been negative in the TTM period, indicating losses. Despite a positive EBIT margin in the TTM period, the EBIT and EBITDA margins have been volatile, reflecting operational challenges.

Balance Sheet

The balance sheet is relatively strong with no total debt in the TTM period, improving the debt-to-equity ratio. However, the equity ratio has declined over the years, indicating reduced financial stability. The return on equity is negative due to net losses, highlighting profitability issues.

Cash Flow

The cash flow statement shows a stable operating cash flow relative to net income, despite net losses. The free cash flow growth rate is positive in the TTM period, indicating effective cash management. However, the free cash flow to net income ratio is affected by persistent losses.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
19.60M	24.77M	31.64M	46.65M	50.88M	57.56M
	Gross Profit
14.86M	15.40M	18.04M	29.90M	31.12M	32.43M
	EBIT
19.48M	13.00M	14.70M	38.18M	32.06M	26.85M
	EBITDA
9.28M	-60.36M	-120.00K	-42.71M	32.06M	21.03M
	Net Income Common Stockholders
137.55M	-61.39M	-4.44M	-48.35M	23.26M	13.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.38M	25.20M	43.86M	3.26M	8.94M	5.80M
	Total Assets
197.33M	252.97M	358.23M	554.00M	649.38M	678.05M
	Total Debt
0.00	0.00	0.00	169.59M	190.16M	214.89M
	Net Debt
-13.38M	-25.20M	-43.86M	166.32M	181.22M	209.09M
	Total Liabilities
10.39M	23.74M	44.60M	182.51M	204.54M	235.22M
	Stockholders Equity
186.95M	229.23M	313.62M	371.49M	444.83M	442.83M
Cash Flow		Free Cash Flow
15.37M	18.15M	15.46M	23.00M	30.91M	29.62M
	Operating Cash Flow
15.37M	18.15M	15.46M	23.00M	30.91M	29.62M
	Investing Cash Flow
33.39M	8.90M	208.96M	16.73M	22.30M	-8.32M
	Financing Cash Flow
-39.55M	-45.71M	-183.82M	-45.40M	-50.07M	-22.98M

Australian Unity Office Fund Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AOF, the sentiment is Positive. The current price of 0.48 is below the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.48, and above the 200-day MA of 0.48, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AOF.

Australian Unity Office Fund Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIP	68 Neutral	AU$1.95B	19.72	3.99%	5.26%	4.34%	―
SCG	64 Neutral	$18.88B	17.99	5.94%	4.87%	5.05%	500.30%
Sector *	60 Neutral	$2.82B	10.29	0.31%	8508.26%	5.91%	-17.42%
DXS	58 Neutral	$7.63B	―	-9.22%	5.83%	0.32%	28.89%
MGR	54 Neutral	AU$8.88B	―	-6.29%	5.36%	22.66%	-3.80%
GOZ	54 Neutral	AU$1.84B	―	-10.45%	8.54%	2.70%	-8.39%
AOF	53 Neutral	AU$79.73M	―	-26.33%	11.55%	-7.19%	-94.37%

Australian Unity Office Fund Corporate Events

Australian Unity Office Fund Declares New Distribution

Australian Unity Office Fund has announced a new distribution of AUD 0.40 per fully paid ordinary unit, with an ex-date of April 29, 2025, and a payment date set for May 16, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness in the real estate investment sector.

Australian Unity Office Fund Announces Property Sales and Special Distributions

Australian Unity Office Fund has completed the sale of its Valentine Avenue property in Parramatta for $80.5 million, resulting in a special distribution of 40 cents per unit to be paid in May 2025. Additionally, the sale of the Charlotte Street property in Brisbane has been deferred to August 2025, with an increased sale price of $63.5 million, leading to a forecast special distribution of up to 48 cents per unit in September 2025. These transactions are part of the company’s strategic plan to delist and wind up, with a final distribution expected post-settlement.

Australian Unity Office Fund Announces Special Distribution

Australian Unity Investment Real Estate Limited, as the responsible entity for the Australian Unity Office Fund, announced a special distribution of 24 cents per unit, payable on March 21, 2025. This distribution is part of the fund’s status as a withholding managed investment trust and an attribution managed investment trust for the income year ending June 30, 2025, with specific tax implications for non-resident investors. The Distribution Reinvestment Plan is currently closed, and full year distribution details will be provided in the annual statement expected in August 2025.

Australian Unity Office Fund Updates Dividend Tax Notification

Australian Unity Office Fund has updated its previous announcement regarding the notification of tax components related to its dividend distribution. The update, dated March 20, 2025, outlines the details of the dividend distribution, including key dates such as the record date on March 7, 2025, and the payment date on March 21, 2025. This announcement ensures stakeholders are informed about the tax implications of their investments, potentially impacting investor decisions and the company’s market positioning.

Australian Unity Office Fund Announces New Dividend Distribution

Australian Unity Office Fund has announced a new dividend distribution of AUD 0.24 per fully paid ordinary unit. The ex-date for this distribution is set for March 6, 2025, with a record date of March 7, 2025, and payment scheduled for March 21, 2025. This announcement reflects the fund’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness in the real estate investment market.

Australian Unity Office Fund Completes Property Sale and Announces Special Distribution

Australian Unity Office Fund has successfully settled the sale of its property at 468 St Kilda Road, Melbourne, for a net price of $41.5 million. Following this transaction, the company has announced a special distribution of 24.0 cents per unit, with payments expected to commence on 21 March 2025, reflecting the company’s strategic asset management and potential positive impact on investor returns.

Australian Unity Office Fund Announces Strategic Wind-Up Following Asset Sales

Australian Unity Office Fund (AOF) has announced its financial results for the first half of 2025, highlighting a significant transition as over 99% of unitholders approved the disposal of its main undertaking and subsequent delisting. The fund plans to wind up after selling its remaining properties, with settlements expected in the second half of FY25. The proceeds from these sales are anticipated to result in special distributions and redemptions, providing unitholders with returns ranging from $1.11 to $1.14 per unit, impacting the fund’s financial operations and signalling a strategic exit from the market.

Australian Unity Office Fund Releases 2025 Half-Year Results

The Australian Unity Office Fund (AOF), listed on the ASX, has released its half-year results for February 2025. The fund’s update contains key financial metrics that indicate its performance over the period. The announcement highlights both the income statement and balance sheet, providing insights into the fund’s financial health and operational effectiveness, which could influence its market positioning and stakeholders’ decisions.

Australian Unity Office Fund Reports Significant Revenue Decline

The Australian Unity Office Fund reported a significant decrease in total revenues and other income by 49.58% to $5.466 million for the half-year ended December 31, 2024, compared to the same period in 2023. The net profit attributable to unitholders also saw a slight decline of 1.67%, while the Funds From Operations dropped by 85.49%. These results indicate challenging conditions in the commercial property market, potentially impacting stakeholder returns and market positioning.