Aussie property firms: Citi sees tailwinds for retail and office, brighter spots for housing

BWP Trust

27/01/2021 21:22

** Research broker Citi expects a divergent outlook across
Australian property firms in 2021 and sees the historically low
interest rates to be a tailwind for fund managers
    ** Says its positive outlook on the residential market and
the developers is driven by housing enjoying the benefits of
significant stimulus 
    ** Expects COVID-19 to drive substantial declines in market
rent for retail and office property, representing a multi-year
headwind for landlords
    ** Downgrades Dexus  DXS.AX  to "sell" due to expectations
that rent will fall further in office sector, triggered by a
structural change in demand for office space, with increased
flexible working due to COVID-19
    ** Upgrades Goodman Group  GMG.AX  from "neutral" to "buy"
and raises PT to A$20.50 from A$18.50
    ** Favours Goodman Group  GMG.AX , Charter Hall  CHC.AX  and
LendLease Group  LLC.AX  among industrials & Mirvac Group
 MGR.AX  for residential segment
    ** Brokerage expects retail REITs to face a difficult
operating backdrop entering 2021 which will likely put further
pressure on Scentre Group  SCG.AX , Charter Hall Retail REIT
 CQR.AX , and BWP Trust  BWP.AX  
    


 (Reporting by Riya Sharma in Bengaluru; editing by Diane Craft)
 ((Riya.Sharma@thomsonreuters.com;))