UBS says focus turning from rates to capital for Aussie real estate sector

Mirvac

01/02/2023 18:57

** Analysts at UBS say attention on Australia's real estate
sector this reporting season will turn to capital requirements,
which include funding via asset sales and others; as broader
market will start shifting from aggressive rate hike path to
potential cuts
    ** Heading into 1H23, UBS stands 3% ahead of consensus for
the sector, as it primarily expects Goodman Group  GMG.AX  to
realise development profits in Australia
    ** UBS also says it will pay attention to the health of the
sectors underlying real estate and the outlook for the trans 
    ** Brokerage sits above consensus for FY23 for both
LendLease Group  LLC.AX  and Ingenia Communities  INA.AX ; sees
specific risks to Mirvac Group  MGR.AX  
    ** Real estate companies lost about 24% in 2022 as their
dependence on lenders made them vulnerable to aggressive rate
hikes
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))