Macquarie observes customer visits and sales are recovering in shopping centres and the total portfolio is now at 88% of pre-pandemic levels.
The broker remains sceptical whether retail landlords will be able to pass through CPI +2% growth in rents, given the headwinds facing the consumer and the longer term structural changes to retail.
Amid the sell-off across the sector the broker increases its shareholder return estimates, yet on a relative basis Scentre Group remains the lowest. Underperform maintained. Target is $2.85.
Target price is $2.85.Current Price is $2.86. Difference: ($0.01) – (brackets indicate current price is over target). If SCG meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
