Macquarie prefers low-risk Aussie REITS with better cashflow strength

GPT

06/03/2023 02:14

** Analysts at Macquarie say that Australia's fund managers
and property developers have underperformed the real estate
sub-index in February reflecting risks on residential sales,
commercial developments and equity cash flows
    ** Says defensive REITS (stocks with low risks and low
returns) outperformed in February and brokerage prefers REITS
like Dexus  DXS.AX  and GPT Group  GPT.AX  
    ** Brokerage says with potential for further economic
deceleration in the near-term; continues to prefer companies
with greater cashflow and balance sheet strength 
    ** Says discretionary malls operators like Scentre Group
 SCG.AX  and Vicinity Centres  VCX.AX  are likely to face
headwinds from a softer consumer environment ahead
    ** Aussie real estate stocks  .AXRE  are currently trading
1.8% up but fell 23.9% in 2022

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