Morgan Stanley says 'worst is over' for Aussie office REITS in 2025

Centuria Office REIT

13/01/2025 23:13

** Analysts at Morgan Stanley "assert" that 2025 should be a
stronger year for the office real estate firms in Australia
    ** Brokerage sees stabilisation happening first in terms of
valuation for office real estate firms, while cash earnings
could lag another 12-18 months
    ** Morgan Stanley however lowers price target for Dexus
 DXS.AX  to A$7.30 from A$8.25, lowers PT for Centuria Office
REIT  COF.AX  to A$1.23 from A$1.35
    ** Says asset-heavy REITS like DXS or COF could continue to
face challenges from cash earnings headwinds, due to high
vacancy/incentives
    ** Aussie real estate sub-index  .AXRE  up around 1.1% as of
2309 GMT, snapping four sessions of losses

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))