MGR has been a strong performer through 2025, gaining over +18%, although it underperformed the main board through the last few weeks pullback. By definition if we are correct and the ASX200 pushes to fresh highs into Christmas this bodes well for MGR. The property developer’s advance should continue as rate cuts flow through and the local property market improves, although some of this feels built into its share price. The stocks more than 4% unfranked dividend should support the stock moving forward, assuming the RBA Cash Rate is going to fall towards 3%. The company’s revenue comes from three main sources:
- Commercial property investment = reoccurring income.
- Residential development = non-reoccurring income.
- Build to rent = developing large-scale apartment buildings, it retains and rents out, rather than sells.
The last two are clear beneficiaries of a healthy property market, with MGR able to turn the dial on residential development if things improve courtesy of rate cuts, plus, of course, that contentious issue of immigration.
- We are still bullish MGR targeting the $2.50-60 area into Christmas: MM is long MGR in our Active Growth Portfolio.
MM is long and bullish MGR
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