Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

InvestingPro Breakdown: 2 A-REIT stocks to consider

Published 12/07/2023, 02:43 pm

Despite rising interest rates and a slowing economy, it seems that Australia’s housing market is proving resilient, with housing prices continuing to tick higher across the country.

In this environment, investing in A-REITs (Australian Real Estate Investment Trusts) may provide strong dividend payouts amid rising commercial and residential rental prices.

With this strategy in mind, here are 2 companies on the S&P/ASX 200 that hold the potential to outperform current market conditions, according to InvestingPro.

Charter Hall Group (ASX:CHC)

What does the company do?

Charter Hall is a prominent fully integrated property investment and funds management group in Australia. The company leverages its expertise to access, deploy, manage, and invest equity, aiming to create value and deliver excellent returns for its investor customers. Charter Hall has curated a diverse portfolio of high-quality properties across key sectors such as Office, Industrial & Logistics, Retail, and Social Infrastructure. With a focus on partnerships and financial discipline, the company is dedicated to creating and investing in places that foster growth for its customers, employees, and communities.

Daily price action action data shows the company trading in a tight range, near yearly lows of A$10.50:

CHC

Source: Investing.com

However, stronger than expected revenues and earnings indicate strength amid the current higher interest rate environment:

CHC - Revenue Trend

Source: InvestingPro

CHC - EPS

Source: InvestingPro

Fair Value Estimate

Currently, the stock is trading at A$10.95, while the average of 14 Fair Value Investing Models revealed a price target of A$15.98, indicating an upside of 45.6%.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

CHC - Fair Value

Source: InvestingPro

Stockland Corporation Ltd (ASX:SGP)

Stockland Corp Ltd (Stockland) is a real estate development company based in Sydney, Australia. The company specializes in property development, management, and investment services for retail, industrial, office, and residential properties. Its property portfolio includes retirement living villages, shopping centers, office assets, logistics centers, business parks, and residential communities. Stockland also develops serviced apartments in urban areas and operates aged care facilities. Additionally, the company offers property trust management and property management services. Stockland manages properties across multiple Australian states, including New South Wales, Queensland, Victoria, and Western Australia.

Stockland’s share prices have increased 11.5% year-to-date, and strong fundamentals indicate that the company is in good condition to weather upcoming recession risks.

Both revenues and earnings per share have performed well in the previous financial year:

SGP - Revenue Trend

Source: InvestingPro

SGP - EPS

Source: InvestingPro

The company also offers a strong payout history, maintaining dividend payouts for 31 consecutive years:

SGP - Payout History

Fair Value Estimate

Currently, the stock is trading at A$4.06, while the average of 5 Fair Value Investing Models revealed a price target of $4.22 indicating an upside of 3.9%.

SGP - Fair Value

This analysis was done using InvestingPro, access the tool by clicking on the image.

Find All the Info you Need on InvestingPro!

Find All the Info you Need on InvestingPro!

Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counseling or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky, and therefore, any investment decision and the associated risk remains with the investor.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.