August Monthly Newsletter

  • August saw most Australian companies release their financial reports for the first six months of 2023. The month showed that Australian listed companies are in better health than feared, with more companies beating expectations and guidance than missing. The dominant theme moving share prices over the month was issues in the Chinese property sector, a falling Australian dollar (-6%), and actual company financial results.
  • The Atlas High Income Property Fund pulled back by -3.8%, giving back July’s gains despite having a good earnings season based on rising inflation-linked rents, low vacancies, and long lease terms to quality tenants.
  • Portfolio companies, on average, increased dividends by +2% in the August reporting season, slightly ahead of the broader property index that was unchanged from August 2022. The key focus in reporting season was valuations and the perception that company valuations are stale and do not represent what a company could realise from selling its assets today. While this may be true for office towers and large shopping centres, it is not valid for companies the Fund holds selling assets over the past year at stated book value.

Go to Monthly Newsletters for a more detailed discussion of the listed property market and the fund’s strategy going into 2024.