FY21 results were in line with UBS estimates. The broker believes the potential for a multiple re-rating from the well-articulated strategy is not in captured in the share price.
Consistent with other A-REITs, overheads and maintenance expenditure have stepped up. FY22 guidance is for 34.6-35.6c in FFO per share which UBS believes is a positive, given the risk of a major re-set is now off the table and when compared with other A-REITs that have been reluctant to provide guidance. Buy rating and $ 5 target unchanged.
Sector: Real Estate.
Target price is $5.00.Current Price is $4.52. Difference: $0.48 – (brackets indicate current price is over target). If SGP meets the UBS target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
