Diversified property group MGR has advanced by 9.3% year-to-date, a stellar effort considering the carnage in other sectors of the ASX. MGR delivered a strong 1H25 result in February, but we are becoming increasingly concerned about how easily it will be able to sell off over $500 million in non-core asset sales when other asset classes are suddenly “on-sale”. Additionally, its trading environment may struggle to improve if the country falls into, or even flirts with, a recession. A few months ago, we thought rates would fall because inflation was under control. Now, markets are pricing in an aggressive easing cycle because tariffs will cause a significant economic contraction, not a positive backdrop for MGR.
- We are considering if better alternatives have arisen to MGR after ASX’s downward rerating: MM holds MGR in its Active Growth Portfolio.
MM is long and cautiously bullish MGR
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