Citi upbeat on Australia's real estate investment landscape in 2024

Goodman

05/01/2024 03:39

** Analysts at Citi expect Australian real estate to
re-enter the investment debate in 2024 as peaking interest rates
bring general investors back to the sector
    ** Brokerage believes pressure of higher bond yields may
linger into 2024 as book values continue to decline for REITs 
    ** "We see most pressure for office (given both higher cap
rates and potential pressure on income), with other property
types of well protected given offsets from income growth" - Citi
    ** Says alternative asset classes like manufactured housing
& self-storage may be best performers in 2024
    ** Adds retail remains relatively well supported in the
short term because of rising populating growth
    ** Citi prefers value stocks such as Goodman Group  GMG.AX ,
National Storage REIT  NSR.AX , Lifestyle Communities  LIC.AX ,
Ingenia Communities Group  INA.AX  and Stockland Corp  SGP.AX 
    ** "As focus turns towards results and the earnings growth
outlook into, FY25 these stocks will continue to remain
attractive in our view" - brokerge
    
   Company        RIC     Price   Rating
                          Target  
                           (A$)   
 Goodman        GMG.AX    25.50   Buy
 Group                            
 National       NSR.AX    2.60    Buy
 Storage REIT                     
 Lifestyle      LIC.AX    21.00   Buy
 Communities                      
 Ingenia        INA.AX    4.80    Buy
 Communities                      
 Group                            
 Stockland      SGP.AX    5.10    Buy
 Corporation                      
 
 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))