Citi upbeat on Aussie real estate stocks; Goodman Group in focus

Goodman

12/01/2025 19:23

** Citi foresees a more positive investment landscape for
Australian real estate stocks  .AXRE , driven by the interest
rate cycle expected to begin easing in May
    ** Brokerage's outlook remains particularly strong for
high-growth sub-sectors such as data centers, retail,
self-storage and land leases
    ** We expect declining financing costs will provide
additional tailwinds, supporting earnings growth across the
broader sector - Citi
    ** Citi adds Goodman Group  GMG.AX  remains attractive as
the property firm benefits from compounding development growth
through global data center demand
    ** Brokerage positive on retail assets operator GPT Group
 GPT.AX  as co's new management starts to implement a renewed
strategy
    ** Citi also upgrades property developer Scentre Group's
 SCG.AX  rating to "buy" from "neutral"
    ** AXRE subindex up 2.7% so far this year, outperforming a
1.7% gain on the benchmark ASX 200 index  .AXJO 

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by Lisa
Shumaker)
 ((Nikita.Jino@thomsonreuters.com;))