Bunnings ((WES)) has leased 71% of the Growthpoint Properties Botanicca 3 asset for 10 years and seven months with rents and incentives in line with the market.
Macquarie notes Bunnings is now one of the company’s top 10 tenants by income, strengthening the tenant base.
While Growthpoint continues to build its exposure to strong tenant covenants with limited exposure to small-medium enterprises, valuation is demanding and Macquarie retains a Neutral rating. Target is raised to $3.56 from $3.12 .
Sector: Real Estate.
Target price is $3.56.Current Price is $3.52. Difference: $0.04 – (brackets indicate current price is over target). If GOZ meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
