Aventus Group is an Australian real estate investment company. The group is the largest fully-integrated owner, manager and developer of large-format retail centres in Australia, with a portfolio of 20 centres valued at over AUD $2 billion. The company is listed on the Australian Stock Exchange and currently has a market capitalisation of AUD $1.7 billion.
Aventus Group shares have had a good run over the last 12 months – rising approximately 35% – on the back of an improved financial performance and investor demand for yield. Recent half-year results, released on 11 February, were robust, with H1 funds from operations (FFO) rising 10.8% to AUD $52.5 million, and first-half profit up 12.9% to AUD $71.9 million.
Source: 2iQ Research
While Aventus’ recent H1 results pleased the market, we think it’s worth noting that Managing Director and CEO Darren Holland has sold a large amount of stock in the last week or so. According to our records, the insider has dumped around AUD $14 million worth of Aventus stock since 14 February, reducing his personal holding by approximately 34%. This could be interpreted as a sign that Holland sees limited share price upside in the near term. Given this large insider sale, we think a little bit of caution towards Aventus shares is prudent right now.