Real estate, a transforming sector – LLC, SGP, GPT, VCX and CHC

  • Dec 19, 2019 AEDT
  • Team Kalkine
Real estate, a transforming sector – LLC, SGP, GPT, VCX and CHC

The real estate investment might find itself in the centre of rapid economic and social change, which is transforming the developed environment, in 2020 and beyond. The real estate companies would have various opportunities, involving more risks and new value drivers.

According to some media reports, it is anticipated that the global stock of institutional-grade real estate would expand to US$45.3 trillion in 2020 from US$29.0 trillion in 2012, a growth of more than 55%.

The real estate sector comprises of two industries:

  • Equity Real Estate Investment Trusts (REITs) industry- The industry includes companies or trusts that focus on the acquisition, development, ownership, leasing, management and operation of properties.
  • Real Estate Management & Development industry- The industry includes companies that are engaged in activities such as management, development & sales, or real estate services.

In this article, we are highlighting five real estate stocks:

Lendlease Group (ASX: LLC)

An ASX listed real estate player, Lendlease Group engages in the retail property, asset management and construction businesses. The group has its operations in four regions – Europe, Asia, Australia and the Americas. It has delivered a total of 1,623 residential apartments for sale in multiple cities including Sydney, Melbourne and London.

Financial year 2019 highlights (year ended 30 June 2019)

  • Lendlease Group generated revenue of $13,414 million from its core business in FY2019, which was $13,288 million in FY2018.
  • Total group revenue for FY2019 stood at $16,555 million.
  • The development EBITDA stood at $793 million for FY2019.
  • Operating EBITDA of the company was $1,493 million for FY2019 which was lower than $1,638 million reported in FY2018.

Stock Information

LLC’s stock was trading at $18.770 on 19 December 2019, down by 0.372 per cent (at AEDT 12:54 PM). The company has nearly 564.48 million outstanding shares and a market capitalisation of approximately $10.63 billion. The stock has a 52 weeks high price and low price of $19.950 and $11.030, respectively. The P/E ratio of LLC’s stock stands at 23.570x, with an annual dividend yield of 2.23%.

Stockland (ASX: SGP)

Stockland is an Australia-based property development company. The company was founded in 1952 and is engaged in developing, owning and managing a broad portfolio of workplace and logistics assets, retail town centres, residential communities as well as retirement living villages.

Estimated distribution announcement for the half-year ending 31 December 2019

According to an ASX announcement, the company declared the estimated distribution of 13.5 cents for each ordinary stapled security unveiled for the half-year ending 31 December 2019. Stockland notified that the estimated distribution is consistent with the market guidance which was issued in the fiscal year 2019 results and first quarter 2020 update.

To determine the entitlement to the half-year distribution, the record date is Tuesday 31 December 2019. The payment for the half-year distribution would be made on Friday 28 February 2020. The company also mentioned that half-year results would be announced on Wednesday 19 February 2020, which would also include the details of the actual distribution for the six months to 31 December 2019.

Stock Information

SGP’s stock was trading flat at $4.790 on 19 December 2019 (at AEDT 12:56 PM). The company has nearly 2.38 billion outstanding shares and a market capitalisation of approximately $11.42 billion. The stock has a 52 weeks high price and low price of $5.125 and $3.420, respectively. The P/E ratio of SGP’s stock stands at 36.850x, with an annual dividend yield of 5.76%.

GPT Group (ASX: GPT)

An ASX listed company, GPT Group is one of the biggest diversified property groups in Australia. GPT Group operates and owns approximately $24.8 billion portfolios of logistics, office and retail property assets.

Retirement of Non-Executive Director

On 12 December 2019, the company announced the retirement of Mr. Lim Swe Guan from his role as a Non-Executive Director of the group with effect from the close of business 31 December 2019.

Recently, the company had announced the appointment of new Non-Executive Director Mark Menhinnitt with effect from 1 October 2019. Mr. Menhinnitt would stand for election at GPT Group’s Annual General Meeting in May 2020.

Security distribution

On 12 December 2019, GPT Group announced an estimated distribution of 13.37 cents per ordinary stapled security for the six months to 31 December 2019. The Ex-distribution date would be Monday, 30 December 2019; record date would be Tuesday, 31 December 2019 and the date of payment of would be Friday, 28 February 2020.

In addition, the company unveiled that it would release its 2019 annual results on Monday, 10 February 2020.

Stock Information

GPT’s stock was trading at $5.805 on 19 December 2019, up by 0.086 per cent (at AEDT 1:05 PM). The company has nearly 1.95 billion outstanding shares and a market capitalisation of approximately $11.3 billion. The stock has a 52 weeks high price and low price of $6.500 and $5.290, respectively. The P/E ratio of GPT’s stock stands at 9.740x, with an annual dividend yield of 4.57%.

Vicinity Centres (ASX: VCX)

Listed on the ASX, Vicinity Centers is a retail property group with operations in investment, leasing, development, property management as well as funds management. The group has a 100% unified asset management platform. VCX has approximately $26 billion in retail assets under management throughout sixty-three shopping centres.

2019 AGM presentation

The company updated its AGM presentation on 14 November 2019 on ASX. The quick highlights are-

FY2019 financial highlights

  • Vicinity reported a net profit of $346million
  • The company’s key earnings measure, funds from operations per security, increased by 2.0% on a comparable basis, led by 1.5% net property income growth.

Summary from 2019 AGM presentation

  • Robust financial results delivered despite a challenging retail environment.
  • The company has a strong balance sheet having broad funding flexibility.
  • Vicinity has a strong emphasis on operational efficiency and leveraging data and technology.
  • The economic stimulus likely to benefit retail sales in the fiscal year 2020.
  • For the fiscal year 2020, FFO guidance is 17.6 to 17.8 cents per security.

Stock Information

VCX’s stock was trading at $2.575 on 19 December 2019, up by 0.98% (at AEDT 1:04 PM). The company has nearly 3.76 billion outstanding shares and a market capitalisation of approximately $9.59 billion. The stock has a 52 weeks high price and low price of $2.770 and $2.415, respectively. The P/E ratio of VCX’s stock stands at 28.210x, with an annual dividend yield of 6.14%.

Charter Hall Group (ASX: CHC)

An ASX listed property investment management company, Charter Hall Group (ASX: CHC) is into operating office, retail and industrial properties via listed as well as unlisted property funds and partnerships, on behalf of institutional, retail and wholesale investors. Charter Hall Group has over 28 years’ experience in funds management and property investment.

On 12 December 2019, Charter Hall Group declared that the company had obtained $1.25 billion of acquisitions throughout the platform. Charter Hall Long WALE REIT will own 50% of the CHC managed partnership; Charter Hall Retail REIT and Charter Hall Group will own 30% and 20% of the CHC managed partnership respectively.

Stock Information

CHC’s stock was trading at $11.320 on 19 December 2019, down by 0.264% (at AEDT 1:03 PM). The company has nearly 465.78 million outstanding shares and a market capitalisation of approximately $5.29 billion. The stock has a 52 weeks high price and low price of $12.855 and $7.280, respectively. The P/E ratio of CHC’s stock stands at 22.480x, with an annual dividend yield of 3.06%.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK