Stockland (SGP)

By Jason Fittler

SGP is a diversified property group in Australia, which owns, develops and manages a portfolio of shopping centres, residential communities, retirement living villages, and office and industrial assets.

The recent market up date in May indicated that conditions continue to be weak. 

There are expectations that the residential property development will pick in the coming 12-18 months.

Stockland reaffirmed their dividend at $0.24 per annum, which at the current price is a 6.8% yield.

Our target price is $3.90 on SGP; this represents an 11.4% upside to the current price. 

Stockland has a well-diversified business model which provides a stable revenue base.

Stockland is positioned to benefit from any recovery in the property sector.

The price has come back 12.5% over the past month on the back of the company announcements and expectations of continuing poor performance in the property sector.

This provides a great opportunity to buy into the company at a discount to the recent market highs.

This is a long-term purchase with the view of holding the company for the dividend and long-term growth.

The property sector was oversold during the GFC, with many investors now being underweight in property.

Stockland is a core holding in a long-term portfolio and provides excellent exposure to the property sector.

For more information on Stockland (SGP) please contact us on 07 4771 4577.