Property and Infrastructure

A quarterly update by Westfield Group shows another lift in expected development starts, value on offer prompting two upgrades to Buy ratings.

While not cheap, Spark Infrastructure’s internalisation is seen as a positive by analysts and a possible hurry-up for other externally managed funds to follow suit.

A new report by industry consultant and economic forecaster BIS Shrapnel predicts annual engineering construction spending in Australia will top $100bn.

A six-monthly survey by mortgage insurer Genworth Financial has found homebuyers would have become more confident since September if not for the spate of natural disasters.

Recent share price weakness has improved value in the Australian REIT sector, with residential developers the preferred exposure.

RBS Australia suggests there’s potential for a re-rating of Lend Lease if the Valemus acquisition delivers on earnings growth potential from FY12.

Australian REITs outperformed the broader market in February, brokers attributing this to a solid profit season and cautious optimism on the part of management.

Managed property remains a popular investment in Australia, but listed REITs are not the only form of managed property investment.

Mirvac beat expectations with its interim result and stockbrokers have upgraded in response.

The outlook for Australian REITs appears solid as market conditions improve and given scope for an increase in capital management, while online is not seen as a major threat to shopping centres.