Stockland Corp's residential sales moderating in line with expectations - Jefferies

Stockland

17/10/2022 23:24

** Jefferies says real estate investment firm Stockland Corp
Ltd's  SGP.AX  Q1 business update was in line with brokerage's
expectations
    ** Brokerage raises PT on company's shares by 15% to A$3.76;
retains "buy" rating
    ** Company on Monday posted its Q1 business update, where it
maintained its FY23 outlook for funds from operations per
security of 36.40 to 37.40 Australian cents on a pre-tax basis
 urn:newsml:reuters.com:*:nASX5f7y9N
    ** Stockland said residential demand continued to moderate
with enquiries down 26% on previous quarter, in line with
pre-pandemic levels, and residential net sales were down 45% on
previous quarter
    ** Company's landlease FY23 settlements are secured with
strong operating metrics in retail and industrial sectors -
Jefferies
    ** Brokerage expects residential defaults of 10%-15% in H2
of FY23, says defaults are low but will likely grow
    ** 7 of 13 analysts rate the stock "buy" or higher, 4 "hold"
and 2 "sell"; median PT A$4.06 – Refinitiv
    ** Company's shares down 23.8% this year, as of last close
 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com))