SGP is a diversified REIT which has enjoyed the recent strong housing market, residential sales grew by almost 70% in Q3 and inquiries remain 40% above the long-term average – not a surprise with interest rates helping fuel a property boom. Importantly the company has a large land bank to satisfy the current demand enabling it to ride this particular wave. COVID hasn’t damaged the commercial side of the business as much as feared leaving the company in a solid position.
SGP yields ~5% unfranked which should be supportive into weakness but we feel there is a lot of good news baked into this cake and pullbacks towards its 2021 lows wouldn’t surprise.
MM likes SGP closer to $4.20
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