Research notes

A noisy FY26 result but still a healthy level of earnings, while FY27 guidance pointed to lower production, higher D&A and higher capex versus pre-result consensus. A new capital management framework, ranking growth amongst its highest priorities was revealed, while uncertainty remains around what will be acquired. BPT is a good business, and is enjoying higher output from Waitsia as it ramps up, but undersized oil & gas reserves reduces our view on valuation and risk. We maintain a SELL rating with A$0.82 target price (was A$0.81).

Construction has started. Capex estimates to be largely unchanged from 2024 estimates. Rook I entered construction on 8 June. Development spending is rising (C$30.7m in 2Q26 vs C$23.9m in 1Q26), and the company expects no material revisions to the capital cost estimate from August 2024. A near-term dilution overhang is approaching. From 22 September 2026, NXG can call their 2023 debentures and has signaled expectations of conversion to equity rather than repayment. That's up to 16.3m new shares on issue. We move to an ACCUMULATE rating (previously BUY) due to material valuation updates with a reduced price target of A$15.60ps (previously A$20.80ps).

Centuria Office REIT (COF) delivered a broadly in-line FY26 result. FFO of 11.2cpu and distributions of 10.1cpu were both delivered in line with guidance, with the more relevant detail in the FY27 outlook. FFO guidance of 11.3cpu marks the first year of growth since FY22, while distributions have been reset to 9.0cpu, below market expectations in what management describes as a through-cycle setting. The balance sheet remains the constraint with gearing at 43.7%. Encouragingly, leasing volumes were among the strongest in COF's history although this has yet to translate into occupancy, which was largely unchanged. COF trades at a c.46% discount to NTA and a 67% discount to replacement value, although the catalysts to close that gap remain limited in our view. We retain our Trim with a $0.88/sh price target (previously A$0.80), reflecting our revised earnings forecasts.

REA’s FY26 result continued to highlight the resilience of the franchise, particularly its ability to maintain double-digit yield growth (+13%) in its core Australia business. The result was broadly in line with our expectations. On a core operations basis it delivered ~7% topline growth and EBITDA (pre associate losses) growth of ~12%. Cost discipline was a key highlight in our view, with open jaws for the full year. Our FY27-FY29F EPS is increased by 1-3.5%. Our DCF-derived price target increases to A$203 (from A$199). BUY recommendation maintained.

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally. The company’s product offering through its stores includes merchandise and content purchased for resale, and products offered by third-party sellers. It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, Blink, eero, and Echo, and develops and produces media content.

Flutter Entertainment plc is a global sports betting and gaming company headquartered in Dublin, Ireland. Its offerings span online and retail sports betting, online poker, casino games and daily fantasy sports. The company operates through several key brands including Betfair, Paddy Power, Sky Bet, Sportsbet and FanDuel, catering to customers across Europe, Australia and North America.

Microsoft is an American multinational technology company that develops and markets software, services and hardware. The company is best known for its software products, including Microsoft Windows operating systems, the Microsoft Office suite and the Internet Explorer web browser. Its five main operating segments include: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division.

Linde Plc is a global industrial gases and engineering company. It designs and builds equipment that produces industrial gases. The company also offers gas production and processing services such as olefin plants, natural gas plants, air separation plants, hydrogen and synthesis gas plants and other types of plants. Its primary products are atmospheric gases and process gases.

Freeport-McMoRan (FCX) is an American based miner that is heavily focused on copper mining and produces gold and molybdenum as by-products to its copper production. FCX owns significant interests in three out of seven of the largest copper mines in the world by-production, the Grasberg Minerals district in Indonesia, the Morenci mine in Arizona, and the Cerro Verde mine in Peru. Indonesia is the largest source of FCX’s revenue. The Grasberg district in Indonesia is the second largest copper mine in the world and the largest gold mine, despite gold being produced as a by-product. Additionally, it is one of the lowest cost mines in the world due to the high grades of copper and gold produced. FCX operates seven open pit copper mines in North America and two copper mines in South America.