Property and Infrastructure

Macquarie Atlas revealed subdued traffic growth on key roads in the June quarter. The problem for brokers is the subdued part.

Transurban’s traffic growth and toll revenue improved in the June quarter and brokers look at where the FY14 momentum will come from.

Analysts take a close look at both retail and office A-REITs and find rental returns are under pressure.

House prices, building activity and consumer confidence are all subdued and Goldman Sachs has downgraded Australian economic growth forecasts.

Pressures on retailer sales from online competition have been well flagged but it also translates to shopping centre income and yields, in BIS Shrapnel’s view.

BIS Shrapnel sees the residential property market quite mixed over the next three years. Star performers WA and NT will lose some gloss while NSW and Qld are the improvers.

FNArena’s Treasure Chest reports on money making ideas from stockbrokers and other experts. A lower Aussie has recently led brokers to upgrade Macquarie Atlas but CIMB argues renewed euro strength is likely and French traffic stats are vulnerable.

Macquarie Atlas is a big winner on the fall in the AUD against the USD and EUR, prompting brokers into ratcheting up their earnings and distribution forecasts to attractive levels.

Brokers are finding renewed opportunities in AREITs recently as the sector’s activity continues to benefit from the low cost of debt.

Federation Centres has sold 50% stakes in six shopping centre assets. Brokers believe it’s time work started on proving up the value of the rest of the portfolio.