Aussie property firms results slightly ahead of estimates, Jefferies says

Centuria Industrial Reit

04/03/2024 02:32

** Analysts at Jefferies say Australian real estate firms'
results in the February reporting season were slightly ahead of
expectations
    ** Brokerage says results announcements saw major property
developers either maintaining or tightening estimates
    ** Adds Aussie REITs focussed and will continue to focus on
tight cost control in a bid to lower corporate and divisional
expenses
    ** Retail demand from tenants remain strong due to lack of
space and developments with department stores downsizing,
allowing firms like Scentre Group  SCG.AX  and Vicinity Centres
 VCX.AX  to repurpose space to higher paying tenants - Jefferies
    ** Sees Increased focus on development over acquisitions for
firms such as Region Re  RGN.AX , Centuria Industrial  CIP.AX 
CIP, Mirvac  MGR.AX  and Stockland Corp  SGP.AX   as
acquisitions don’t stack up given cap rate & debt spread
    

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))