First half results were in line and distribution guidance is reiterated at $0.09 per security. Morgans notes some good leasing activity during the half.
The company offers exposure to east coast office/industrial property with weighted average rent reviews around 3.3% per annum. Morgans updates forecasts to account for new industrial developments and does not assume any divestments.
The broker moves to FY21 as a base year for capturing the income from developments. Given the strong appreciation in the security the broker downgrades to Hold from Add. Target is raised to $1.35 from $1.29.
Sector: Real Estate.
Target price is $1.35.Current Price is $1.38. Difference: ($0.03) – (brackets indicate current price is over target). If GDF meets the Morgans target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
