3 ASX Real Estate Stocks for Diversified Portfolio

  • November 04, 2020 01:58 PM AEDT
  • Team Kalkine
    Team Kalkine
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3 ASX Real Estate Stocks for Diversified Portfolio

Summary

  • Lockdown and social restrictions impacted the property market in Australia, which had experienced a reasonable start in 2020.
  • After the initial shocks of the pandemic, the real estate space seems to be getting out of the woods.

The real estate sector involves landlords, serviced office providers, property developers and Real Estate Investment Trusts (REITs). At its onset, the pandemic badly hit the sector. However, the real estate has managed to observe some recovery from the initial shocks of COVID-19.

Let's have a brief discussion on three ASX-listed real estate stocks.

Goodman Group (ASX:GMG

Group CEO of Goodman Group (ASX: GMGGreg Goodman mentioned in a letter in September that throughout the pandemic, the firm remained focused on executing its strategy of owning top-quality properties in locations where customers can be close to consumers.

The Australian integrated commercial and industrial property group adapted quickly to the new operating environment with limited disruptions, and the business continued its long-term growth.

The group performance in FY20 remained ahead of guidance. Moreover, GMG experienced increased customer demand for strategically located space under its AUD 51.6 billion portfolio.

On 4 November 2020, at AEST:11:44 AM, GMG traded at AUD 18.700, up by 0.053 per cent.

Charter Hall Group (ASX:CHC)

Integrated property company Charter Hall Group (ASX:CHCreported a 46.2 per cent increase in operating earnings per security (OEPS) to 69.3 cents per security (cps) for FY20 ended 30 June 2020. It continued to generate leading REIT sector distribution per security growth of 6.0 per cent to 35.7cps, while retaining a significant proportion of earnings via a distribution payout ratio of 52 per cent.

Operating earnings stood at AUD 322.8 million, and statutory profit reached AUD 345.9 million, up 47 per cent year-on-year. The property investment portfolio grew to AUD 2.0 billion or by 10 per cent over the year.

On 4 November 2020, at AEST:12:23 PM, CHC traded at AUD 12.665, up by 0.996 per cent. 

GPT Group (ASX:GPT)

Diversified listed property group GPT Group (ASX:GPThas unveiled plans to divest its 25 per cent interest in 1 Farrer Place, one of Australia’s most iconic office assets stationed in Sydney. The company intends to use the proceeds towards new opportunities including its logistics development pipeline.

It continues to have a strong balance sheet position. The Group has AUD 1.1 billion of available liquidity in cash and undrawn bank facilities, which fully funds all current commitments to 2023.

In September, GPT continued to extend its debt maturity profile issuing AUD 63 million of 10-year Medium Term Notes in the Hong Kong market.

On 4 November 2020, at AEST:12:37 PM, GPT traded at AUD 4.190, down by 0.239 per cent.

 

 


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