It's was a pretty shaky start to the week for the S&P/ASX 300 Index (ASX :XKO) and ASX shares this Monday. The ASX 300 Index added just under 0.05% to its value by market close but jumped between gains and losses all day.

But just because the index had a case of Monday jitters doesn't mean all ASX 200 or ASX 300 shares were anaemic. So let's discuss three ASX shares that moved in a big way on their latest earnings reports this Monday.

Three ASX 300 shares bucking the market on Monday

oOh!Media Ltd (ASX: OML)

ASX 300 outdoor advertising share oOh!Media is the first company worth a look at today. We got a look at oOh!Media's full-year results for 2022 this morning, and investors were clearly impressed with what was on display. The oOh!Media share price gained a healthy 4.05% today to close at $1.54 a share.

Revenues rose 18% to $592.6 million, while adjusted underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was up 64% to $127.1 million. Adjusted net profit before tax (NPAT) spiked an impressive 343% to $56.2 million. This all helped the company raise its final dividend by 200% to 3 cents per share.

GPT Group (ASX: GPT)

ASX 200 real estate investment trust (REIT) GPT Group is next up this Monday.

GPT also reported its full-year results for 2022 this morning. Funds from operations rose 11.9% to $620.6 million, while free cash flow was up 6.7% to $499 million.

However, thanks to "negative revaluation movements", statutory net profit after tax fell from $1.42 billion to $469.3 million. That didn't stop GPT from raising its final distribution though, which has risen 7.8% to 25 cents per unit.

GPT units initially responded well this morning to these earnings, rising as high as $4.68. But investors cooled their heels, and the REIT was back down to close at $4.57, down 1.72% for the day.

EVT Ltd (ASX: EVT)

Finally today, let's discuss ASX 200 entertainment company EVT. It was EVT's turn to present its own half-year results this morning, covering the six months to 31 December 2022.

In this case, it was green numbers across the board. EVT reported a 58.9% surge in revenues to $607 million for the half-year, while EBITDA rose a whopping 1,266.4% to $30.9 million. Meanwhile, reported net profits came in at $96.74 million, up from $63.4 million on the prior year.

But clearly, investors had been hoping for more. The EVT share price closed down 1.2% today at $14.02 a share. That's despite spiking to $14.94 early this morning.

The post 3 ASX 300 shares that made big moves on earnings updates appeared first on The Motley Fool Australia.

Australian home values are falling at their fastest rate since the global financial crisis, so will ASX property shares go down with them?

According to CoreLogic data, home prices fell 5.3% in 2022. Back in 2008, they dropped 6.4%. (These numbers combine all types of residential properties — houses, townhouses, and apartments).

The price declines in 2022 were greatest in Sydney (down 12.1%) and Melbourne (down 8.1%).

But what happened to ASX property shares?

If home values drop, will ASX property shares fall too?

Let's take a look at what happened to ASX property shares or real estate investment trust (REITs) in 2022.

Real estate is one of the 11 sectors of the ASX. Over 2022, the S&P/ASX 200 A-REIT Index (ASX: XPJ) fell 24%. This compares to a 5.5% drop in the benchmark S&P/ASX 200 Index (ASX: XJO).

As seen here, individual results among the REITs varied substantially.

This is the top 10 ASX property shares by market capitalisation:

Why did ASX property shares fall in 2022?

The important thing for investors to note is that the bulk of REITs are either not associated with the residential housing market, or have only limited exposure.

Most of them hold portfolios comprising retail property, offices, and industrial property such as warehouses and shopping centres. There are exceptions, of course, like apartment developer Mirvac Group.

However, in a climate of rising interest rates, ASX REITs with substantial debt or leveraging will be affected. Why this occurs is obvious — interest costs are rising, while property values are falling.

The REIT companies that build property have also been subject to the rising costs of inputs like timber due to inflation and ongoing global supply chain disruptions.

ASX property shares can also be affected by falling land values in a market downturn. This reduces the value of the assets on their books.

But remember, most of these REITs are not holding property with the aim to sell it and distribute capital gains to shareholders. REITs are traditionally much more of a yield play than a growth play.

And therein lies an opportunity with REIT shares for investors today.

REITs are reliable dividend payers

ASX property shares tend to involve commercial property, and average tenancies are much longer term than residential leases. Traditionally, rental returns are steadier, hence distributions are relatively stable.

REIT yields are presently higher because share prices fell so much in 2022.

One of the highest dividend payers among ASX property shares is the Centuria Office REIT (ASX: COF). Its share price dropped 35% last year and it is $1.60 today. That gives it a trailing dividend yield of 9.5%.

There are also ASX property shares that aim to deliver more share price growth than yield. Goodman Group is a great example.

Over the past five years, the Goodman share price has risen by 150%. That includes the 25% decline in 2022. So, that's an average annual share price gain of 30% per year. A residential property could never match that. Goodman is forecasting an 11% growth in earnings per share (EPS) for FY23.

Should I buy property or shares?

Whether ASX shares or property is a better investment is an age-old debate among investors that will rage on forever. Ideally, a bit of both is the way to go because it provides investment diversification.

But if you had to choose one, ASX shares might be more appealing for several reasons.

The scale of initial investment is probably the biggest drawcard of shares. ASX shares investing allows you to start with lower funds, so you can use savings instead of borrowings to get started. They're certainly less hassle, and there are no holding costs (outside of the interest on any margin loan you get to invest).

But the capital gain you'll get from ASX property shares is likely to be smaller. Over the past five years, the A-REIT index has risen by only 7%.

So, investors who choose shares over bricks-and-mortar property might pick a few ASX growth shares for capital gains and some ASX dividend shares (perhaps including property shares) for reliable income.

The post House prices are tanking. Will ASX property shares go down with them? appeared first on The Motley Fool Australia.

One investment specialist believes that a handful of ASX 200 shares could be attractive merger or acquisition (M&A) targets.

Tribeca Investment Partners lead portfolio manager Jun Bei Liu gave her analysis of these shares in an article that appeared in Livewire yesterday morning.

Liu said the M&A case for these stocks is strengthened due to their depressed valuations amid the current bear market, while their business fundamentals remain strong. Liu believes another catalyst will be a sector rotation into growth stocks over the coming year. From that, the real estate property trust (REIT) and property trust sectors are "the most obvious M&A targets".

Let's investigate which ASX 200 companies could be snapped up in the next 12 months.

Property shares could be a target

Liu believes that Dexus Property Group (ASX: DXS) and GPT Group (ASX: GPT) could be prime M&A targets. They are potentially undervalued when comparing their share prices to their book values.

Liu said:

The most obvious M&A target is the REIT and the Property Trust sector. The premium property players, such as Dexus or GPT Group, are not going to remain at such low discounts to their net asset values. We also see value in Ramsay – we think it looks incredibly cheap, given its premium asset holding, as well as its expected earnings growth over the next few years.

Both of these property shares are down substantially year to date. Dexus is down 30.7% while GPT Group has lost 25.9%.

ASX 200 tech shares too

Liu is also keen on two ASX tech shares as M&A targets, namely NextDC Ltd (ASX: NXT) and Megaport Ltd (ASX: MP1). Liu leaned more towards NextDC due to its robust fundamentals and "infrastructure-like revenue stream".

Thanks to the sector rotation out of technology stocks that unfolded late last year, the technology sector is one of the worst performers on a year-to-date basis. NextDC is down 29% while Megaport is down over twice as much at a 67% loss.

The post 4 battered ASX 200 shares that are 'obvious M&A targets': expert appeared first on The Motley Fool Australia.

It's obvious that a high dividend yield does not equate to overall performance. One only has to look at the historical returns of some of the most famous ASX dividend shares to see this in action. Take Telstra Corporation Ltd (ASX: TLS). Telstra has long been an ASX dividend investor favourite.

Yet the Telstra share price has failed to give investors any kind of long-term capital appreciation. Indeed, its all-time high of close to $9 a share occurred in the 20th century. It has not even come close to its high watermark in the 21st thus far.

High yield ASX dividend shares aren't always winners

Or Westpac Banking Corp (ASX: WBC). As an ASX big four bank, Westpac is also a favourite of the ASX dividend investor. Yet Westpac shares are today going for the same price as the bank was back in 2006. That's a long time to wait for no capital gains.

And we won't even mention AGL Energy Limited (ASX: AGL).

So what is the best way to choose a top-notch ASX dividend share, to sort the wheat from the chaff, if not from yield? Well, let's see what an ASX expert reckons.

Rob Crookston is an equity strategist with ASX broker Wilsons. He recently penned an article on how he selects top-notch ASX dividend shares.

This is where he starts:

We think selecting a dividend strategy by its initial yield is a poor choice because the growth of the dividend over time ultimately determines the income payouts in future years…

We look for dividend-paying companies that can deliver growth year over year, continuously compounding cash flows each year. This is the template for companies we consider when thinking about income investing.

These companies typically increase the dividends they pay to shareholders due to their cash flow growth.

An example

To illustrate, Crookston compares the performances of two ASX dividend shares over the past ten years: APA Group (ASX: APA) and GPT Group (ASX: GPT). He points out that back in 2012, APA and GPT both had comparative dividend yields of around 5.3%. That would generate dividend income of $5,300 a year if an investor was to invest $100,000 into either share a decade ago

However, Crookston points out that $100,000 investment in APA would today be yielding around $11,200 in annual dividend income, or an 11.2% yield on the original capital. That's thanks largely to APA's consistent dividend increases.

In contrast, GPT hasn't been able to keep up with that kind of growth. Its shares would only be netting that same investor $6,900 in annual income today.

As Crookston explains it:

The actual market yields of APA or GPT have not diverged significantly over the last 10 years; both stocks are expected to generate a ~5-6% yield if you invested today.

However, the share price of APA has appreciated in line with the income growth and this has led to a significantly higher total return than GPT. The key here is to take a long-term approach when it comes to dividend investing.

The higher the yield, the higher the risk?

So as you can see, a company's dividend yield is just one of many factors an investor needs to consider to find really top-notch ASX dividend shares. To go one step further, the higher a company's dividened yield is, the more investors should be cautious.

The market loves a good dividend just as much as we do. And if a share has been priced with a large yield, it usually indicates that it is coming with risks attached.

So make sure you look behind that raw yield figure when trying to find your next dividend winner. Your cash flow ten years from now will thank you for it!

The post Could chasing high yields mean missing out on potentially top-notch ASX dividend shares? appeared first on The Motley Fool Australia.

In distressed markets like now, there are plenty of ASX shares that seem to be cheap.

But before you buy indiscriminately, Auscap Asset Management portfolio manager Tim Carleton warned investors to avoid value traps.

"You just think that the business is far too cheap for its earnings profile," he told The Motley Fool last week.

"The problem is often that you have a business that doesn't necessarily have significant earnings growth."

With that in mind, a couple of other experts named two ASX shares that are heavily discounted right now that they believe have a bright future:

These pants are on sale right now

Baker Young managed portfolio analyst Toby Grimm describes GPT Group (ASX: GPT) as "a relatively defensive player within the Australian real estate sector".

"It manages a diversified portfolio of high quality commercial, retail, office and industrial assets in key locations across Australia."

In the face of steeply rising interest rates, the GPT share price has sunk more than 27% since the start of the year.

Grimm told The Bull this dip now provides a tempting entry point.

"Following asset disposals, investment mandate wins, and a better-than-expected first half-year result, we believe GPT is attractively priced on an earnings multiples basis and discount to net tangible asset backing."

The reduced share price also means the dividend yield is now up to a handy 5.6%.

Macquarie Australian equity strategist Matthew Brooks this week named GPT as a stock that's trading at one of the biggest discounts to the long-term trend.

"We think these stocks are more likely to outperform in a bear market rally."

Would you rather be a Qantas customer or shareholder at the moment?

All the recent bad publicity that Qantas Airways Limited (ASX: QAN) has copped for its poor service levels may have investors wondering why they would bother to buy.

But many analysts, including Ord Minnett senior advisor Tony Paterno, feel it's far better to be a shareholder than a customer of the flying kangaroo right now.

After all, the airline does operate in a near-duopoly in the domestic market.

"Our positive view of Qantas is supported by a favourable Australian industry structure that should lead to market share gains," he said.

"Given its superior domestic market structure and share, a restructured and more variable cost base, a strong balance sheet and potential upside from the loyalty program, we believe a premium for Qantas is warranted."

Qantas shares are up just 3.5% year to date but have impressively climbed 17.6% since reporting season.

The post 'Attractively priced': Experts name 2 ASX shares to pounce on right now appeared first on The Motley Fool Australia.

Top broker Macquarie says a "bear market rally" may have already started following yesterday's "dovish" interest rate increase along with weak US ISM Manufacturing data.

The S&P/ASX 200 (ASX: XJO) is up 1.56% at the time of writing after closing 3.75% higher yesterday.

That was the index's best performance in more than two years. Translation: The market loved the Reserve Bank of Australia's decision to raise rates by only 0.25% — not the 0.5% that the market expected.

Top broker names ASX 200 shares poised to outperform

In The Australian today, Macquarie's Australian equity strategist Matthew Brooks said a number of top 100 shares would likely outperform in a bear market rally.

The shares include ASX gold mining stocks and Australian real estate investment trusts (REITs).

The broker says these ASX 200 shares are the furthest below their long-term trend and are rated outperform.

• Newcrest Mining Ltd (ASX: NCM) — share price down 26% year to date
• Evolution Mining Ltd (ASX: EVN) — share price down 48% year to date
• Goodman Group (ASX: GMG) — share price down 35% year to date
• Dexus Property Group (ASX: DXS) — share price down 28% year to date
• GPT Group (ASX: GPT) — share price down 26% year to date
• James Hardie Industries plc (ASX: JHX) — share price down 39% year to date
• Ramsay Health Care Limited (ASX: RHC) — share price down 20% year to date
• ASX Ltd (ASX: ASX) — share price down 21% year to date
• ARB Corporation Limited (ASX: ARB) — share price down 46% year to date
• Reliance Worldwide Corporation Ltd (ASX: RWC) — share price down 44% year to date.

Brooks said:

We think these stocks are more likely to outperform in a bear market rally.

In terms of stocks that may lag, A2 Milk Company Ltd (ASX: A2M) is rated underperform, while Woodside Energy Group Ltd (ASX: WDS), Medibank Private Ltd (ASX: MPL), Brambles Limited (ASX: BXB), WiseTech Global Ltd (ASX: WTC) and Altium Limited (ASX: ALU) are rated neutral.

The post Macquarie reveals ASX 200 shares 'more likely to outperform in a bear market rally' appeared first on The Motley Fool Australia.

Three top ASX shares leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Brickworks Limited (ASX: BKW)

According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this building products company's shares to $24.00. This follows the release of a solid full year profit result last week that was 10.1% ahead of consensus estimates. In addition, Morgans highlights that its shares screen as cheap given the current discount to inferred NTA and the pipeline of value accretive projects to be potentially realised over coming years. The Brickworks share price is trading at $21.18 on Monday.

GPT Group (ASX: GPT)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $4.70 price target on this property company's shares. Macquarie sees an opportunity for GPT to unlock balance sheet capacity to fund its massive uncommitted development pipeline. It appears to believe that this would bode well for its future growth if done successfully. The GPT share price is fetching $3.86 this afternoon.

Lendlease Group (ASX: LLC)

A note out of Ord Minnett reveals that its analysts have retained their buy rating and $12.50 price target on this property company's shares. Although the broker acknowledges that Lendlease is operating in a challenging leasing environment, it remains positive enough to retain its buy rating on Lendlease's shares. This is due partly to company's development pipeline, which includes high quality projects such as the new Google campus. The Lendlease share price is trading at $9.08 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

Despite posting a decent start to the week, the S&P/ASX 200 Index (ASX: XJO) slipped into the red on Monday afternoon. The index closed 0.29% lower at 6,719.9 points today.

Its slip followed a rough Friday on Wall Street. The Dow Jones Industrial Average Index (DJX: .DJI) ended last week with a 0.4% fall while the S&P 500 Index (SP: .INX) fell 0.7% and the Nasdaq Composite Index (NASDAQ: .IXIC) slumped 0.7%.

Back home, the S&P/ASX 200 Utilities Index (ASX: XUJ) was the market's biggest weight today, diving 1.4%.

The S&P/ASX 200 Energy Index (ASX: XEJ) also posted a decline, slipping 1.1% despite oil prices remaining relatively steady on Friday.

The Brent crude oil price rose 0.6% to close 1.6% lower week on week at US$91.35 a barrel while the US Nymex crude oil price gained a single cent to end the week 1.9% lower at US$85.11 a barrel.

But not all was dire on the ASX 200 today. The S&P/ASX 200 Real Estate Index (ASX: XRE) gained 0.8% while the S&P/ASX 200 Materials Index (ASX: XMJ) lifted 0.02%.

But which share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

The Lake Resources NL (ASX: LKE) share price outperformed all others on Monday. Its 12% gain came on the back of an update on the company's Kachi Project.

Today's biggest gains were made by these shares:

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Three top ASX shares leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Airtasker Ltd (ASX: ART)

According to a note out of Morgans, its analysts have retained their add rating and $1.05 price target on this small jobs marketplace provider. Whilst the broker acknowledges the current volatile market conditions and broader sector sentiment, it continues to remain attracted to the strong growth opportunity ahead for Airtasker. This is based on the company successfully implementing its strategy of penetrating the "prodigious TAM opportunity" both at home and overseas. The Airtasker share price is trading at 35 cents on Monday.

CSL Limited (ASX: CSL)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $329.50 price target on this biotherapeutics company's shares. Macquarie highlights that CSL's recent phase 3 trial of garadacimab was successful and brings the hereditary angioedema (HAE) treatment closer to approval. The broker believes it could command almost half of the market in the coming years if it is approved by regulators. The CSL share price is fetching $283.09 today.

GPT Group (ASX: GPT)

Analysts at Citi have upgraded this property company's shares to a buy rating with a $4.90 price target. The broker made the move on valuation grounds after significant weakness in 2022. Citi highlights that GPT's shares have fallen ~25% year to date and are now trading at a ~35% discount to NTA with a forward PE of ~12x. In Citi's view, this is starting to present a reasonable margin of safety. The GPT share price is trading at $4.13 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

The Wall of Worry is a higher barrier for investors to scale this year but there are still plenty of S&P/ASX 100 shares to keep your eye on, according to a top broker.

The figurative wall refers to the market pushing higher despite the growing list of problems. And there are problems aplenty.

Aggressive global interest rate hikes, the sharp slowdown in China's economy and a looming energy crisis in Europe are only some of the obstacles ASX investors have to climb.

Volatility ahead

The experts at Macquarie are also warning investors to brace for more volatility over the next six months. The broker said:

"We think it is hard to make a bull case for stocks when Industrial (non-resource) PEs are already high, we are in the middle of an earnings downgrade cycle and central banks continue to tighten to slow inflation. Our indicators also suggest the US will be in recession by early 2023."

But with volatility comes opportunity. Macquarie polled its analysts for their best ASX 100 shares to buy now.

Defensive ASX 100 shares to buy

One standout is the CSL Limited (ASX: CSL) share price. Macquarie likes the global biotech for its multiple growth drivers.

These include recovery in plasma collections, benefits from the Rika platform, earnings from Vifor and contributions from pipeline products.

Another on the buy list is diversified property giant GPT Group (ASX: GPT). Macquarie believes its defensive earnings and gearing puts it in a good position to outperform in this environment.

Speaking of defensive shares, Lottery Corporation Ltd (ASX: TLC) is also on the broker's most favoured list. Macquarie calls it one of the most defensive discretionary shares due to its long and exclusive lotteries and Keno licenses in Australia.

Best placed industrial shares

Meanwhile, Idp Education Ltd (ASX: IEL) is another top ASX 100 share pick due to its structural growth story. The long-term growth rate of international students stands at 7% to 10% a year and the group enjoys good operating leverage.

The James Hardie Industries plc (ASX: JHX) share price is also a top buy, in Macquarie's book. While the building materials supplier is under pressure from a slowing property market, the company is more exposed to renovations and remodelling – an area that has greater resilience to economic cycles.

Energy shock puts these ASX 100 shares on the buy list

Finally, there are two ASX 100 shares in the energy sector that made the cut. These are the Origin Energy Ltd (ASX: ORG) share price and Santos Ltd (ASX: STO) share price.

The energy shortage caused by the Russian-Ukraine war will drive up global gas prices and the two are well placed to benefit.

The post These are the top ASX 100 buy ideas from Macquarie appeared first on The Motley Fool Australia.

Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, SG Hiscock portfolio manager Hamish Tadgell gives his thoughts on a trio of stocks that have fallen off a cliff this year.

Cut or keep?

The Motley Fool: Now let's take a look at what you might do with three ASX shares that have plunged in recent times. 

First is Seek Limited (ASX: SEK), which has lost almost 40% year to date.

Hamish Tadgell: I'd say this is a keeper.

We think it's a quality business with some very strong longer-term growth prospects and optionality on Asian markets in particular. 

I think, though, that the market's clearly been debating how much this company could be priced or impacted for a recession. And when we look at it, the market's actually pricing a recession in or about a 25% drop in volumes in this business. Seek did very well coming out of COVID, really tight labour markets. Everyone's looking to put people on and jobs.

There's this concern that [if] we get a recession, then people will stop employing and job advertising will fall in a hole. We certainly think that consumer spending will slow over the next sort of 12, 18 months with higher rates, as household cash flow starts to come under a little bit more pressure. But we don't see the same drop off at this point in labour market activity. 

This week, [there was] a two-day conference up in Canberra, which is all about trying to create more jobs in a very tight labour market, which has been COVID impacted, but I think there's other structural issues going on, changing it at the moment. And we think that Seek should continue to benefit from a reasonably resilient labour market over the next sort of 12, 18 months. 

Therefore, I see it as being mispriced at the moment.

MF: At least in Australia, it's got quite a dominant market position. It's seen off many challengers over the years, hasn't it?

HT: Yeah, it does. Look, I mean LinkedIn and Facebook and others over the years have become competitors, but it's certainly still the preeminent site, the leading site. 

What we look for in these online businesses is you want to be the market leader because it's the virtuous circle that you look for in these businesses where the market leader creates more opportunities, that then feeds into more eyeballs. More eyeballs feed into that being the preeminent site where people want to advertise and you get that virtuous circle and we still think that Seek certainly has that.

MF: How do you feel about Aristocrat Leisure Limited (ASX: ALL), which has lost about a quarter of its stock price this year?

HT: Yeah, this stock was clearly impacted during COVID. It had a very strong recovery due to the [post-]COVID recovery, but also due to the announcement that it made that it was looking to get into iGaming and buy one of the leading competitors overseas and that transaction fell over, and with it, the stock has come back quite a bit. 

But we still see this as a quality business generating $1 billion in free cash flow per annum with little debt. It is the leading global player in electronic gaming machines and it's really got a strong opportunity to continue to grow in the gaming and digital online space. 

I'd say, in particular, it's very well positioned to still develop and grow in that iGaming, or real money gambling as they call it, market in the US. So, this is an opportunity, which Aristocrat looked to buy and enter the market through buying a competitor. That didn't play out, but it's now going the organic route of developing the business itself. But we certainly think that they've got the people and the opportunity and the capital to be able to do that.

The iGaming market in the US is estimated to be about $20 billion. It's emerging as a result [of] the deregulation by the US states at the moment… So we see it again as a keeper and one that we think there's certainly value opened up as a result of the pullback in price.

MF: Great, so two buys there. 

What are your thoughts on the third one, GPT Group (ASX: GPT), which has dropped about 24% so far this year?

HT: It's an REIT that has derated a lot over the last 12 months. General Property Trust is the biggest diversified REIT probably in the market — office, industrial, retail, and some funds management. 

This is one we probably cut. We just think that we're increasingly cautious around the office and the industrial market. And in particular, office really, we think is probably the asset, the property asset class that is most at risk post-COVID from changing behaviour.

MF: There's been a cultural change in where people work, hasn't there?

HT: Well, I think it is. There's been a lot [of debate], over the last 12 months… but it remains pretty uncertain how it's going to play out. 

We're seeing it in our business and our observation talking to a lot of companies is that staff are seeking more flexibility. People are spending less time in the office. And I think companies are getting to that realisation and up until now probably have been debating about how much space they need, what they need.

But I think over the next year or so, in a couple of years, you're going to start to see more decisions made. And I think that is going to have a big impact upon rents and cap rates in the office space. We're seeing already at the moment — the incentives in the office have gone up dramatically. 

Industrial assets have been very big — had done incredibly well — through the deflationary cycle and lower rates, but also globalisation. And my comments at the outset about higher rates, de-globalisation, I think, puts some pressure around those cap rates.

The area we probably prefer the most is probably retail at the moment, in terms of property, but also social infrastructure assets like I spoke about before in terms of, Qube Holdings Ltd (ASX: QUB).

So for those reasons, I think it's one that we would probably cut.

The post 2 discounted ASX shares I'd buy now and one I wouldn't touch: expert appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) slipped again today, weighed down by materials shares. The index closed Friday's session 0.25% lower at 6,828.7 points.

That leaves it 275.4 points – or 3.88% – lower than it ended last week following disastrous sessions on Monday and Thursday.

The S&P/ASX 200 Materials Index (ASX: XMJ) fell 1.9% today after concerns of a major lockdown and lower factory activity in China dragged on commodities overnight.

Iron ore futures tumbled 8% overnight to US$96.39 a tonne. Meanwhile, base metals fell as much as 7.6%.

In more positive news, the S&P/ASX 200 Financials Index (ASX: XFJ) lifted 0.7% despite a notable announcement from AMP Ltd (ASX: AMP).

All in all, five of the ASX 200's 11 sectors gained on Friday. But which share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today's top performing ASX 200 share was tech giant Life360 Inc (ASX: 360). Its share price surged 5.56% despite the company's silence.

Find out more about Life360 and what it's been up to lately here.

Today's biggest gains were made by these ASX shares:

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Earnings season truly kicked off among S&P/ASX 200 Index (ASX: XJO) shares today with many of the market's favourites releasing results. The index ended the day 0.45% higher at 7,064.30 points.

If you missed out on any of the excitement today, never fear. There'll be plenty more over the rest of the month.

The S&P/ASX 200 Real Estate Index (ASX: XRE) led the way on Monday, gaining 1.95%, itself led by GPT Group (ASX: GPT) following the company's half-year earnings.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) recorded the biggest fall, slumping 0.8%. It was weighed down by the Beach Energy Ltd (ASX: BPT) share price after the company released its financial year 2022 earnings amid lower oil prices.

The Brent crude price fell by 1.5% to US$98.15 a barrel on Friday. It outperformed the US Nymex crude oil price, which dropped 2.4% to US$92.09 a barrel.

The S&P/ASX 200 Financials Index (ASX: XFJ) also underperformed today, dipping 0.2% amid – you guessed it – a notable constituent's earnings. This time it was the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price that slumped on the release of full year results while Zip Co Ltd (ASX: ZIP) stock also tugged at the index despite the company's silence.

But it was a broadly productive day on the ASX 200. Nine of the index's 11 sectors ended the day in the green.

But which ASX 200 share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

Monday's best performing ASX 200 stock was none other than lithium developer Core Lithium Ltd (ASX: CXO). The stock took off on the back of an update on exploration activities.

Find out more about what Core Lithium has been up to here.

Today's biggest gains were made by these ASX shares:

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Monday has shaped up to be a good day for the S&P/ASX 200 Index (ASX: XJO), and an even better one for these three ASX 200 shares. They're each outperforming in the index on the back of exciting updates.

For context, the index is currently 0.5% higher than it was at the end of last week.

So, what's driving these ASX 200 shares upwards on Monday? Let's take a look.

3 ASX 200 shares taking off today

Core Lithium Ltd (ASX: CXO)

It's a good day for owners of Core Lithium stock. The ASX 200 share is currently 9% higher than it was at Friday's close, trading for $1.605.

The Northern Territory-focused lithium developer released an update on its exploration activities this morning, detailing lithium and gold finds. On top of that, it updated the market on two exploration grants.  

BlueScope Steel Limited (ASX: BSL)

Monday has also brought gains for ASX 200 steel producer BlueScope. Its share price is up 4.9% right now, trading at $17.72.

Its gain comes on the back of the company's full year earnings, released to the market this morning.

BlueScope saw a 48% jump in sales revenue in financial year 2022 compared to that of the prior corresponding period (pcp), as well as a 135% increase in net profit after tax (NPAT) and a 119% lift in earnings before interest and tax.

GPT Group (ASX: GPT)

Finally, shares in ASX 200 diversified property giant GPT Group are also taking off today. They've gained 5.5% at the time of writing to swap hands for $4.535 apiece.

That's despite the company reporting mixed results for the first half of 2022 today.

GPT saw its funds from operations increase 8% last half compared to that of the pcp, while its net tangible assets per security lifted 2.8%. However, its NPAT slumped 30% while it dropped its interim dividend by 4.5% to 12.7 cents per share.

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The GPT Group (ASX: GPT) share price is making a commendable move upwards today following the release of its interim results for 2022.

At the time of writing, shares in the diversified property group are 5.7% in the green. As a result, the group's share price is swapping hands at $4.545 apiece. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is 0.48% into positive territory on Monday.

GPT share price jumps on mixed numbers

• Funds from operations (FFO) improved 8% to $326.5 million compared to the prior corresponding period
• Net tangible assets (NTA) per security up 2.8% to $6.26
• Net profit after tax (NPAT) down 30% to $529.7 million
• Interim distribution down 4.5% to 12.7 cents per share
• Portfolio occupancy finished at 97.5%
• Available cash of $1,124 million at the end of the half

What else happened in the half?

Pleasingly for GPT shareholders, the six-month period involved another round of portfolio revaluation increases. In total, the group saw its assets increase in value by $219.5 million, taking the total valuation to $16.4 billion as at 30 June 2022.

GPT's logistics portfolio was the greatest contributor to a heightened valuation during the half. Specifically, this segment increased 2.6% to $115.4 million as a result of leasing outcomes and higher rents. This segment's solid performance might explain the positive GPT share price movement today.

Comparatively, the group's office and retail portfolios experienced a $6.8 million (0.1%) and a $97.3 million (1.8%) increase respectively.

While GPT managed to achieve a 99.3% occupancy across its retail portfolio, the office market continues to struggle. For example, at 30 June the group recorded an occupancy rate of 92% across its portfolio. With more available leasing inventory, the office market was said to remain competitive.

What did management say?

Commenting on the result, GPT Group CEO Bob Johnston said:

The Group delivered a solid result in the half, despite the ongoing impacts of the global COVID-19 pandemic and the uncertain economic environment driven by high inflation and rising interest rates. All three business segments reported increased Funds From Operations on the prior corresponding period.

Further adding,

Ongoing structural tailwinds in the logistics sector saw continued momentum in tenant demand, driving vacancy rates lower and resulting in strong market rental growth. Our Logistics portfolio maintained high occupancy and we continue to make good progress with the build-out of our development pipeline and our partnership with QuadReal.

What's next?

Looking to the future, management addressed the elephant in the room for the group's FY22 guidance, interest rates.

The group highlighted the increased cost of debt and potential softening in valuation increases. Additionally, management stated it expects moderation in retail sales growth coinciding with higher rates in response to inflation.

Despite this, GPT Group is anticipating 32.4 cents per security in FFO for the full year.

GPT Group share price snapshot

The backdrop of a booming property market has failed to provide much assistance to the GPT Group share price so far in 2022. While the benchmark index is in the red by 7%, GPT shares are down by roughly 16.5%.

Based on the current valuation, the property group has a dividend yield of 5.4%.

The post GPT share price lifts despite 30% profit plunge appeared first on The Motley Fool Australia.

The earnings downgrade cycle may only just be starting and this ASX 200 sector is the latest to get the chop from a leading broker.

While big hikes in interest rates and recession fears have roiled the S&P/ASX 200 Index (ASX: XJO), ASX real estate shares are likely to feel an earnings squeeze over the coming months, according to Morgan Stanley.

Defensive qualities won't save these ASX 200 shares from downgrades

Some might be surprised by the forecast. After all, real estate is meant to be one of the safer places to park capital when growth slows and inflation rises.

This is because their earnings tend to be protected by relatively long leases and rents often have an inflation adjustment mechanism.

But these aren't enough to offset the rising cost of finance for several ASX 200 real estate shares, according to Morgan Stanley.

Financial de-engineering

ASX 200 real estate shares use financial leverage to maximise returns. This entails the creative use of debt and hedging contracts.

Their ability to generate returns and dividends for shareholders is getting constrained. The cost of three-year base rate hedges have jumped to an average of around 3% since March 2022. Morgan Stanley noted this used to cost 0.75% in the prior 12 months.

Moreover, the floating base rate, or Bank Bill Swap Rate (BBSW), currently stands around 1.8%. This reference rate was 0.1% in the preceding two years.

While many ASX 200 real estate shares have locked in their debt for the next six to 12 months, this only covers around 60% to 70% of their borrowings.

Further, rates are expected to stay elevated for the medium to longer term. This means these companies could face a refinancing headache over the coming year.

Another downgrade headwind for these ASX 200 shares

If this isn't enough to rattle the sector, cap rates are likely to rise, Morgan Stanley warned. Property values drop as cap rates rise, and vice versa.

The real estate investment trust (REIT) cap rate spread above the 10-year Australian government bond yield is now circa 120 basis points. That's the tightest in the last decade.

As a result of these headwinds, Morgan Stanley downgraded its recommendations on GPT Group (ASX: GPT) and National Storage REIT (ASX: NSR) to "underperform".

The GPT share price is trading 4.68% lower at $4.375 while the National Storage share price is down 5.6% to $2.19 at the time of writing.

Other ASX real estate shares in the firing line

These aren't the only real estate shares that got a ratings cut. The broker also downgraded Charter Hall Long WALE REIT (ASX: CLW), Healthco Healthcare and Wellness Reit (ASX: HCW), and Centuria Industrial Reit (ASX: CIP) to "equal-weight". The three companies have shed 6.9%, 7.82%, and 6.11% respectively at the time of writing.

Morgan Stanley explained:

These five stocks have endured the largest downward EPS [earnings per share] adjustments in our modelling, largely because of their low existing cost of debt, and also relatively low/short rate hedge profile.

The post This is the latest ASX 200 sector to be hit by downgrades appeared first on The Motley Fool Australia.

But some ASX 200 shares fared far worse than the index today. So let's talk about three such companies that hit a new 52-week low during today's trading session.

All three are in the real estate business, so that should tell you something about what the market is trying to get out of right now.

3 ASX 200 shares that hit new 52-week lows today

Our first unlucky share to check out today is Dexus Property Group (ASX: DXS). Dexus owns a number of real estate assets, of which most are commercial property.

This ASX real estate investment trust (REIT) slipped 3.84% to $9.51 a unit by the end of the day's trading. That happens to be Dexus' new 52-week low. This REIT is now down by more than 15.5% over 2022 thus far.

But Dexus wasn't the only REIT exploring new territory today. Diversified property developer Mirvac Group (ASX: MGR), another ASX REIT, also had a shocker.

Mirvac owns both industrial and commercial office real estate. This company's units ended up finishing at $2.06 each at the end of today's trading, down 1.44%. But the REIT hit a new low of $2.04 earlier today. That puts Mirvac down by a painful 31% or so over 2022 thus far.

Another ASX REIT in the doldrums today is GPT Group (ASX: GPT), a shopping centre and diversified property company. GPT units also had a day to forget. It finished up at $4.32 a unit, down a hefty 4.42%. But GPT hit a new 52-week low of $4.32 earlier in today's session.

Why the battering?

It's very possible that this distaste for ASX REITs that investors are displaying today is a result of the interest rate rise we saw earlier this week.

There are few ASX shares that are affected more by rising interest rates than REITs. That is because, as leveraged land owners, REITs face higher borrowing costs directly, just as mortgage holders do.

No doubt ASX REIT investors will be hoping for a kinder week next week.

The post 3 ASX 200 real estate shares that hit new 52-week lows on Friday appeared first on The Motley Fool Australia.

The GPT Group (ASX: GPT) share price is in the green today on the back of the company's FY 2021 financial results.

The real estate investment trust's (REIT) shares are currently swapping hands at $5.07 apiece, a 1.4% gain.

Let's take a look at what GPT reported today?

GPT share price rises amid full year results

Highlights of the financial results for the 2021 year include:

• Net profit after tax (NPAT) of $1,422.8 million after a net loss after tax of $213.2 million in 2020
• Investment property valuations gained $924.3 million in 2021
• Net tangible assets (NTA) per security of $6.09, up 9.3% from $5.57 in 2020
• Funds from operations (FFO) of $554.5 million, down 0.03% from $554.7 million in 2020
• FFO per security of 28.82 cents, up 1.2% from 28.48 cents in 2020
• Full year distribution of 23.2 cents per security, up 3% from 22.5 cents in 2020.

What else happened in the half?

GPT's office portfolio achieved a 5.8% net valuation increase in 2021. In December, GPT started its development of 51 Flinders Lane in Melbourne. This project is expected to be completed in early 2025. During the half, GPT also built on its development opportunity in George Street, Parramatta with the acquisition of adjacent properties.

GPT's Logistics portfolio improved by $1.4 billion to $4.4 billion during the year. This portfolio also saw its valuation increase by 14.4% in 2021. The company reported strong tenant demand for logistics space.

The GPT retail portfolio improved in the first half of 2021, however, COVID-19 lockdowns impacted trading conditions in July.

Despite this, GPT reported retail sales recovered compared to the previous year. Total centre sales climbed 3.7%, while total specialty sales improved 6.2% on the previous year.

Melbourne Central is still experiencing strong demand from retailers although the development is reliant on foot traffic from workers, students, and tourists in the city.

Management comment

In an announcement from the GPT Board, it was noted:

GPT commenced 2021 with solid momentum however this was disrupted by the Delta outbreak of COVID-19 in the second half of the year.

Severe lockdown measures restricted trading activity and impacted the performance of our Retail portfolio, particularly during the third quarter. Despite these impacts the group's diversified portfolio generated a total return of 14.1% for the year.

While Omicron has been another recent setback to the recovery, we are optimistic that the worst is behind us with case numbers trending in the right direction, high vaccination rates and the need for restrictive measures diminishing.

What's next for GPT

GPT is expecting to deliver an FFO of 31.7 to 32.4 cents per security in the 2022 financial year. The company is also optimistic it can achieve a distribution of 25 cents per security in 2022. This guidance is assuming operating conditions get back to normal by the end of the first quarter, including no further lockdowns.

More activity in the Melbourne and Sydney central business districts, including workers returning to the office, is important to GDP's outlook for 2022.

GPT share price recap

The GPT share price has surged 23% in the past year but is down more than 6% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned roughly 6% over the past year.

At its current share price, the REIT has a market capitalisation of $9.7 billion.

The post 'Worst is behind us': GPT (ASX:GPT) share price climbs despite COVID-19 disruptions appeared first on The Motley Fool Australia.

Buying activity has picked up for the GPT Group (ASX: GPT) share price after the company released its half-year results.

At the time of writing, the real estate investment trust (REIT)'s share price is up 3.65% to $4.83.

GPT share price rallies on strong first half recovery

GPT delivered a well-rounded result for the six months to 30 June 2021, supported by minimal disruptions from COVID-19 and a robust recovery in retail sales.

• Net profit after tax (NPAT) of $760.5 million compared to a net less after tax of $520.4 million in June 2020
• Funds from operations (FFO) of $302.3 million or FFO per share of 15.64 cents, a 24.6% increase on the prior corresponding period (pcp)
• Interim dividend of 13.3 cents per share, a 43% increase on pcp
• Retail rent collection rate 104% of 1H 2021 net billings
• Total centre sales up 5.0% and total specialties sales up 6.5% compared to the same period in 2019

What did GPT achieve in 1H 2021?

Investors are bidding the GPT share price higher on Monday after the company cited strong momentum in the six months to 30 June 2021.

The company was pleased to advise that its investment properties received a revaluation gain of 3.3% or $471.7 million.

GPT's logistics portfolio was a standout performer, recording a $314.7 million or 10.6% valuation gain. Occupancy for its logistics portfolio was 96.8% with rent collections for the first half representing 100% of net billings.

The office portfolio recorded a valuation increase of $121.2 million or 2.2%, reflecting "strong investor demand and transactions". The company advised that occupancy for its $5.8 billion prime grade office portfolio was 88.9% at 30 June 2021. Pleasingly, rent collections for the first half were 100% of net billings.

Commenting on the office real estate landscape, the company said:

In the first half of 2021, positive indicators of strong jobs growth supported by rising business confidence, led to stronger tenant enquiry. While this has been interrupted by the reimposition of Government restrictions, GPT expects the positive momentum of the first half to re-emerge as restrictions unwind.

GPT's retail portfolio valuations eked out a gain of $35.8 million or 0.6%. The company said that retail sales were showing strong signs of recovering after the easing of COVID-19 restrictions at the beginning of the period.

The company advised that while Victorian assets rebounded strongly in the second quarter, they have been impacted by further government lockdowns and ongoing restrictions at the end of the half.

It said that "… given the asset's location in the Melbourne CBD, it is heavily reliant on foot traffic from office workers, students and tourists, resulting in a slower recovery compared to the rest of the portfolio".

What did management say?

In response to the interim results, GPT CEO Bob Johnston said:

Over the first half of 2021, our Logistics portfolio continued to grow through developments and acquisitions, and we advanced commitments with our strategic partner QuadReal Property Group. We successfully completed Office developments at 32 Smith and Queen & Collins. Further, we experienced a rebound in retail sales and retail rent collections were high. Our balance sheet and liquidity position remained strong, with A and A2 investment-grade credit ratings from S&P and Moody's respectively.

Johnston also commented on the recent lockdowns, saying:

While the recent COVID-19 outbreaks have disrupted the economic recovery, we expect this to be transitory and that we will see a return to favourable business conditions once vaccination rates reach a level that allow restrictions to be lifted on a more sustained basis.

GPT share price in FY21

The GPT share price has rallied strongly on Monday, currently 3.0% higher to $4.80.

GPT acknowledged that COVID-19 restrictions will continue to disrupt the Australian economy and the company's operating environment.

While recent restrictions have disrupted the company's recovery, it expects this to be temporary and favourable conditions will return once restrictions are lifted.

GPT cited the logistics space as a key opportunity with "unprecedented levels of investment demand". The company said that it is "well positioned to capture this opportunity with $1.4 billion in [its] logistics development pipeline".

On the flip side, it said office leasing "remains challenging with elevated vacancy rates and new supply emerging" but the company remains optimistic that conditions will improve once CBDs re-open.

Despite the mixed results, the GPT share price will be paying a solid interim dividend of 13.3 cents.

The interim dividend alone represents a yield of 2.7% at today's prices.

The post GPT (ASX:GPT) share price rallies 3% on FY21 earnings appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are tumbling lower:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 5.5% to $6.41. Today's decline appears to have been driven by regulatory concerns in China. This follows news of government crackdowns in the Chinese educational sector. Whether regulators take a look at the infant formula market, only time will tell. But there are fears that the government could use regulatory measures to favour domestic dairy brands.

Cann Group Ltd (ASX: CAN)

The Cann share price has crashed 16% to 32 cents. This follows the announcement of another capital raising by the cannabis company. Cann is aiming to raise a further $20 million at a discount of 27.5 cents per new share. Should the company complete this capital raising successfully, it will mean it has raised $138.2 million from investors since listing. Cann recorded sales of $4.3 million in FY 2021. It is raising these funds to help it deliver substantial cost savings as it ramps up production.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 3% to $14.45. This travel agent's shares have come under pressure recently amid concerns that the Delta variant of COVID-19 could push back the travel market recovery and lead to Flight Centre burning through significantly more cash than previously hoped.

GPT Group (ASX: GPT)

The GPT share price is down 2.5% to $4.63. Investors have been selling the property company's shares after it withdrew its guidance for FY 2021. According to the release, GPT has withdrawn its Funds From Operations (FFO) and distribution guidance for 2021 due to uncertainty caused by COVID-19 lockdowns in Melbourne and Sydney.

The post Why a2 Milk, Cann, Flight Centre, & GPT shares are tumbling lower appeared first on The Motley Fool Australia.