Stockland operates in the commercial, residential, and retirement living property segments. SGP’s Q3 update showed a continuation of steady residential improvement from a 1H23 low, with net sales of +9% from the previous quarter. Stockland looks good from an A-REIT context, given the business is well-positioned for a period of higher interest rates plus its set to benefit from rising migration but the stock is no longer cheap having rallied over 30% from its 2022 low.
- We like SGP below $4.50 but the risk/reward isn’t exciting.
NB We own Dexus (DXS) in our Active Income Portfolio which is arguably a better recovery play than SGP at this stage of the cycle.
MM likes SGP under $4.50
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