Jefferies says Aussie REITs 'attractive', but cautious on macro-economic woes

Scentre

03/03/2023 24:49

** Jefferies remains cautious on Australia's property sector
for fiscal 2023 despite better-than-expected results in the
first half due to aggressive rate hikes and a hawkish central
bank
    ** Says Australian REITs "look attractive" with strong
balance sheets, but remain at the mercy of macroeconomic
activities
    ** Upgrades stock ratings on Dexus  DXS.AX , Region Group
 RGN.X  and Scentre Group  SCG.AX  to "buy" from "hold"
    ** Rising debt costs put a brake on strong rental growth
with 25% of our FY23 estimates revised down- Jefferies
    ** Add the industrial property sector showed strong rental
growth and under renting based on favorable demand and supply,
but growth is expected to slow
    ** Property firm Goodman Group  GMG.AX  in its interim
results forecasts strong operating performance in H2
    ** Real estate giant Dexus  DXS.AX  posted results above
Jefferies' estimates and upgraded its distribution outlook for
FY23
    
    
 

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))