Insights

How the property boom is affecting the Garda (ASX:GDF) share price

The Garda (ASX: GDF) share price is rising today after the company released its third-quarter FY21 market update.
The post How the property boom is affecting the Garda (ASX:GDF) share price appeared first on The Motley Fool Australia. –

growth in housing asx shares represented by little wooden houses next to rising red arrow

The Garda Diversified Property Fund (ASX: GDF) share price is rising today after the company released its third-quarter FY21 market update.

The Garda share price is up 1.35% to $1.13 per share at the time of writing.

Garda is a property group headquartered in Brisbane that invests in, owns, manages and develops commercial and industrial real estate. 

What Garda’s update said

The Garda share price is responding positively to news that it sold 3 assets, all above book value, for a total of $30.6 million.

It provided 2 construction updates on tenant-committed properties in Brisbane, one in Wacol that is due for completion in May and another in Acacia Ridge that has just commenced construction.

Its property group at Berrinba is now 100% committed, while further leasing at property Botanicca 9 has increased the gross avenue of the Botannica property to 47%. Approximately two-thirds of Garda’s portfolio is now to be independently valued.

Across its property portfolio, Garda’s occupancy rates are now 89%.

Garda has benefited immensely from the nationwide property price boom due in part to record-low interest rates. It’s selling a further 3 high-value properties and has now set its prices unconditionally.

Its Archerfield property is now unconditional for $7.0 million, representing a 12.9% premium to its independent valuation. It is due to settle in mid-April. 

Lytton is under contract for $11.0 million, representing a 26.1% premium to its independent valuation and is subject to Garda completing certain works. Lytton is expected to settle at the end of May.

Finally, Varsity Lakes is now also unconditional for $12.6 million, representing a 5% premium to its independent valuation. Settlement is expected to occur not later than 11 May 2021.

Where Garda’s boom prices will be reinvested

Investors looking for increases in Garda share price will be hoping that the company reinvests its current earnings in an enhanced construction pipeline.

Garda admitted that it would direct most of the current cash flow towards decreasing debt. However, it has its eyes on ultimate industrial development.

The company says eventually, some funding will be directed to completing the pre-mentioned property assets at Wacol and Acacia Ridge.

Garda share price snapshot

The Garda share price rose from 89 cents to $1.27 between April and November 2020 and has remained within a five-cent window for most of 2021. It’s down in 2021 by 8.8% so far. 

It’s managed a 12-month return of 32%, which has beaten the real estate sector by 1% but lost to the S&P/ASX 200 Index (ASX: XJO) by 1.66%. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post How the property boom is affecting the Garda (ASX:GDF) share price appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!