Earnings of Aussie real estate firms to reflect toll of lockdowns - analysts

Scentre

07/02/2022 23:24

** Citi says protracted lockdowns could have a significant
impact on Australian real estate firms this reporting season,
affecting Dec-half results and likely prompting new guidance
    ** UBS says retail REITs may provide a partial hedge to
inflation, but the bottom up view remains more subdued given the
structural shift to online, which has been accelerated by the
pandemic
    ** Citi flags Charter Hall  CHC.AX  as having potential to
surprise on the upside while seeing risk of further negative
earnings revisions for Scentre Group  SCG.AX      
    ** "We expect most REITs to err conservatively when
considering providing or raising earnings guidance, particularly
given the recent impact of the Omicron variant" - Citi
    ** UBS says pure-play fund mangers such as CHC and Centuria
Capital  CNI.AX  have the headwind of rising rates, which could
be a significant performance drag
    ** "We have a preference for residential, given the
valuation starting point and select key names, which should be
structurally supported as COVID becomes more endemic in society"
- UBS
     
 
    

 (Reporting by Arundhati Dutta in Bengaluru)
 ((Arundhati.Dutta@thomsonreuters.com;))