ALE Property Group (LEP)



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General Information
Company Name: ALE Property Group
Stock Code: LEP
Website: www.alegroup.com.au
GICS Sub-Industry: Diversified Real Estate Investment Trusts
Market Cap ($M): 615
Equiv. Shares (M): 196

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 3.160 $ 3.140 $ 3.200 $ 3.120 $ 3.140 42,017 $ 0.020  0.637 %

Current Broker Consensus Recommendation more
Recommendation: Sell (4)
Recommendation Date: 20th Oct 2014
Brokers Surveyed: 2

Company Overview

Business Description:
ALE Property Group (LEP) is a property investment and property fund management company which owns a property portfolio of 87 pubs across five mainland states of Australia. LEP comprises of Australian Leisure and Entertainment Property Trust and its controlled entities including ALE Direct Property Trust, ALE Finance Company PTY Limited and Australian Leisure and Entertainment Property Management Limited as the responsible entity of the trust.

Strategy Analysis:
ALE is a passive owner and operator of pub properties. Each property is leased to Australian Leisure and Hospitality, a Woolworths subsidiary, for an initial term of 25 years to 2028 with four 10-year options to renew. Annual rent reviews are linked to CPI. ALE is seeking to acquire additional high quality properties that complement its existing portfolio. 2010 was a period of consolidation with 12 properties sold and debt reduced to more conservative levels. ALE Property Group reported a net loss of $3.73m for the half-year ended 31 December 2012. Revenues from ordinary activities were $26.39m, up 2.9% from last year. Basic and Diluted EPS was (2.2) cents compared to 0.23 cents last year. Net operating cash flow was $18.14m compared to $10.68m last year. The interim dividend declared was 8 cents, compared with 8 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 26.4 13.5 6.2 23.3 17.1 5.4 0.0
2015  F 24.9 12.7 -10.4 24.7 16.8 5.3 0.0
2014  A 27.7 14.2 1.7 19.7 16.5 5.9 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
CFS Retail Property Trust (CFX) $6,101 M -0.0071 0.1126 0.0174 16.0901 14.4613 14.2146 6.80 6.90 7.03
Dexus Property (DXS) $6,167 M -0.2670 0.0766 0.0140 14.2588 13.2439 13.0610 5.52 5.98 6.28
Goodman Gp (GMG) $9,356 M 0.0702 0.0726 0.0655 15.6314 14.5731 13.6770 3.86 4.15 4.40
Investa Office Fund (IOF) $2,051 M 0.4908 -0.3066 0.0335 9.9612 14.3656 13.8993 5.54 5.72 5.96
ALE Property (LEP) $628 M -0.3299 0.5043 0.0492 34.4421 22.8959 21.8219 5.12 5.24 5.36

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth
LEP 2.24 29.1 1.63 1.13
Market 0.88 15.0 1.23 1.69
Sector 1.43 13.0 1.04 3.15

Directors
Name Position Start Date
Mr James T McNally Executive Director 26 June 2003
Mr Andrew Frederick Osborne Wilkinson Managing Director 16 November 2004
Mr Peter H Warne Non-Executive Chairman,Non-Executive Director 08 September 2003
Mr John P Henderson Non-Executive Director 19 August 2003
Ms Helen I Wright Non-Executive Director 08 September 2003
Ms Phillipa (Pippa) Downes Non-Executive Director 26 November 2013
Mr Paul Say Non-Executive Director 24 September 2014

Management
Name Position
D J Shipway Asset Manager
A J Slade Capital Manager
Brendan Howell Company Secretary
M J Clarke Finance Manager

Substantial Shareholders
Holding Name
17,076,936 (8.79%) WoolWorths Limited and Associates
17,612,586 (19.36%) Caledonia (Private) Investments Pty Limited & its Associates
20,743,121 (13.01%) Allan Gray Australia Pty Ltd

Calendar of Events
Date Event
25 September 2015 Report (Annual)
05 August 2015 Report (Annual)
05 August 2015 Report (Prelim)
22 January 2015 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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