Property and Infrastructure

Weekly update on recommendation, target price, and earning forecast changes.

Weekly update on recommendation, target price, and earning forecast changes.

Australian REIT stocks appear beneficiaries of a rotation into defensive holdings, while Westfield Retail has been upgraded and there are signs of improvement in the office market.

BIS Shrapnel’s latest analysis on the Australian residential property market suggests there should be moderate price growth through 2013, with the best performances in the Perth, Brisbane and Sydney markets.

A survey of fund mangers by Russell Investments has shown a more uncertain outlook, with defensive assets currently favoured over growth assets.

Ahead of the Herd’s Rick Mills suggests infrastructure programs will support commodities, which should keep junior resource companies on the radar screens of investors.

Charter Hall Office now intends to sell all of its US assets and return capital to shareholders, a move that has brokers split on whether or not the stock offers value at current levels.

Lend Lease’s investor day update impressed analysts and provided much confidence in a sound footing for FY12 and beyond.

Australia REIT yields are attractive relative to bonds at current levels, leading brokers to suggest some opportunities leading into the big June ex-div period.

Mirvac reiterated earnings guidance for FY11 and brokers remain broadly positive on valuation grounds, though an earnings jump is not expected until FY14.