MM had GPT on our radar in September when the stock dipped under $3.90 but we ended up buying REA Group (REA) instead which in hindsight was the wrong way to move unless we can see the recent tech strength reignite REA. GPT is an active owner and manager of a diversified portfolio of Australian property assets including the MLC Centre & Australia Square in Sydney and Melbourne Central, on the base level we believe the stocks trading on a relatively attractive valuation of 14x Est 2022 while its expected to yield almost 6.4% over the next 12-months. The stock also offers some compelling value trading at a substantial ~28% discount to its NTA.
- We like GPT but after its +22% bounce, the risk/reward is clearly less attractive.
MM is mildly bullish GPT
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