Australian property firms attractive after strong earnings season - Jefferies

Centuria Office REIT

07/03/2022 23:46

** Jefferies upgrades fiscal 2022 guidance across most of
its Australian property sector coverage after an upbeat
reporting season
    ** Says geopolitical tensions make Australian real estate
investment trusts (REITs) a "safe place to hide", as earnings
and distributions grow
    ** Top Australian real estate firms upgraded their earnings
guidance last month, prompting Jefferies to hike its
expectations  urn:newsml:reuters.com:*:nL4N2UC02G  urn:newsml:reuters.com:*:nFWN2UD159
    ** Brokerage picks Centuria Industrial REIT  CIP.AX 
Centuria Office REIT  COF.AX , and Charter Hall Retail  CQR.AX 
as its top three picks
    ** Hikes price target for CQR to A$4.45 from A$4.29 
    ** Easing COVID-19 curbs, increasing sales, strong rent
collections helping Jefferies' bullish view
   
                                            EPS estimates (A$)
                           PT (A$)  Rating  FY22      FY23
 Centuria Industrial REIT   4.45     Buy    0.18       0.2
 Centuria Office REIT        2.5     Buy     0.2      0.18
 Charter Hall Retail        4.45     Hold   0.27      0.29
 Dexus                      12.1     Buy     0.7      0.73
 Goodman Group              27.79    Buy    80.69     94.46
 Lendlease                   11      Hold   42.4      69.33
 Mirvac                      2.8     Hold   0.15      0.17
 
 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))