Morningstar trims fair value on Australia's Stockland on cooling demand

Stockland

03/05/2026 21:10

** Morningstar trims its fair value on Australian diversified REIT Stockland SGP.AX, citing a cooling residential property market

** Investment research firm trims fair value estimate to A$5.20 from A$5.23

** Lowers its development margin forecast to 21% for fiscal 2027 from 23%, as rising finance and construction costs are likely to hurt near-term profits

** Morningstar notes buyer inquiries fell 10% in the March quarter, with potential curbs to tax breaks on investment properties also weighing on sentiment

** Adds, SGP "stands to benefit from a structurally undersupplied housing market" over the long run, thanks to its brand and large land bank

** Stock down 29.3% YTD

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Cynthia Osterman)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))