Macquarie reviews the outlook for Vicinity Centres, noting the current share price implies a decline in asset values of -33% compared with pre-pandemic levels.
Yet the broker points to some key assets and believes the pricing is not recognising the performance of convenience-based assets or the strength of the balance sheet.
Macquarie assesses current pricing provides an opportunity and upgrades to Outperform from Neutral. The main risk in the short term is a reduction in the pay-out ratio. Target edges down to $1.64 from $1.65.
Sector: Real Estate.
Target price is $1.64.Current Price is $1.52. Difference: $0.12 – (brackets indicate current price is over target). If VCX meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
