Australia's Stockland buying 12 projects has strong strategic rationale - Jefferies

Stockland

19/12/2023 02:58

(Updates with Jefferies comments)
    ** Shares of Stockland Corp  SGP.AX  rise as much as 2.1% to
A$4.44
    ** Property developer LendLease  LLC.AX  on Monday said it
will sell 12 master-planned Communities projects to SGP and its
capital partner Supalai Australia for A$1.3 bln ($872.2 mln)
    ** The acquisition has strong strategic rationale & returns
- Jefferies
    ** Brokerage raises PT on Stockland to A$4.24 from A$4.12
        ** Jefferies estimates SGP's FY25-26 funds from
operations gains of 4.9% and 4.5% respectively
  
    ** Analysts at Jarden see deal having potential to create
significant earnings improvement for SGP
    ** SGP well positioned to benefit once rate cuts become more
likely and/or affordability becomes less of a concern for first
home buyers - Brokerage
    ** Jarden has "underweight" rating on SGP and PT of A$4.15
    ** LLC shares down 2% on Tuesday
    ** SGP up 19.8% this year, as of last close 
    
($1 = 1.4905 Australian dollars)

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