The Point for Australia/NZ

Research evidence excerpt

The Point for Australia/NZ

Point |

Wednesday, 24 June 2026

Company | Global | Key Rating and Target Price Changes

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Company

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Atlas Arteria Group (ALX.AX) - Takeover defense in play, ALX raises FY26 DPS to

60c, looks to sell Warnow.

IFM announced yesterday that its holding has increased to 42.01% (up c.2% vs

prior). Moreover, we believe ALX's takeover defense is in play, with ALX yesterday

raising FY26 distribution to 60.0cps (+50% vs prior guide of 40c), primarily

reflecting the potential proceeds from the sale of Warnow (11-13c) as well as

incremental proceeds being paid from net borrowing. The future distribution guide

remains at 90-110% of free cash, with the incremental dividend in FY26 expected

to negatively impact future distributions by 2c per share (management guidance).

The expected sale price of Warnow at €100-115m is in-line with independent

expert valuation and above Citi valuation of €92m. While we see this as a positive

outcome, we acknowledge the weaker distributions flagged by ALX in the future as

a headwind for the shares. Our investor feedback suggests the offer may be

unsuccessful (closes on 25 June 7pm Australia time).

Suraj Nebhani, CFA | Howard Penny | Akshit Batra

Collins Foods Ltd. (CKF.AX) - Clucking through cycles

Collins will be cycling a modest FY26 trading update across all three geographies

and there have been some signs that KFC has remained resilient in Australia for

most of FY26. Increasing inflationary pressures are a key risk to our Buy thesis. We

upgrade our rating to Buy noting the share price is down ~14% since 23 March.

Sam Teeger

Ingenia Communities Group (INA.AX) - Pre-blackout meeting indicates Land

lease holding up strong. Retain Buy