Stocks of the Hour: Centuria Industrial REIT, Nick Scali & Resolute Mining

Company News

by Melissa Darmawan

Centuria Industrial REIT’s profit (ASX:CIP) catapulted by 712 per cent for the 2021 financial year, thanks to a string of successful acquisitions, a strong valuation uplift and the eCommerce boom from the pandemic. The property dynamo fired up their acquisition engine, bumping up their portfolio to 62 industrial assets, boosting their portfolio value to $3.1 billion, after they inked 18 contracts over this period. Australia’s largest listed pure-play industrial REIT banked $91.4 million of funds from operations to post $611.2 million statutory net profit, along with a 25 per cent valuation uplift to $587 million with occupancy sitting at 96.9 per cent. Distribution of 17.0 cents per unit is set to be paid on the 10 August. Shares in Centuria Industrial REIT (ASX:CIP) are trading flat at $3.85.

Furniture retailer Nick Scali (ASX:NCK) posted bullish numbers for the 2021 financial year with their net profit after tax, up 100 per cent along with a 42.1 per cent uptick in revenue, compared to the year before beating analyst’s expectations of $79.2 million, as consumers decorate their homes while cooped up inside due to the pandemic. The furniture retailer posted NPAT of $84.2 million with a 92.7 per cent spike in EBITDA of $126.6 million, while costs were 30 per cent of sales, down 8.4 per cent the year before. The furniture giant started the new financial year on a strong note with online growth, up 88 per cent for July compared to the year before. However, they could not provide any guidance for the upcoming year due to Covid-19 as the headline as unpredictable lockdowns, the current supply chain bottle neck and rising costs loom. Shares in Nick Scali (ASX:NCK) are trading 0.9 per cent lower at $12.21.

Gold player Resolute Mining (ASX:RSG) has landed a deal to offload its Bibiani gold mine in Ghana for $122 million (US$90mil) to U.S listed company, Asante Gold. The deal was struck after their first attempt to divest the mine for $142 million (US$105m) in December 2020 to China’s Chifeng Jilong Gold Mining Co which grinded to a halt in April this year. The Chinese miner said it didn’t receive timely information from Resolute about the cancelled mining lease. The Ghanaian minerals watchdog unexpectedly terminated the licence in March to then reinstate the lease a month later blocking the recognition of the sale. Resolute has already banked $40.6 million (US$30m) from the newly struck agreement with the transaction forecasted to complete in 10 days. Shares in Resolute Mining (ASX:RSG) are trading 4.5 per cent higher at $0.58.

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