Sunday, November 29, 2015

Income seekers: Is now the time to stock up on REITs? | Motley Fool Australia

Income seekers: Is now the time to stock up on REITs? | Motley Fool Australia: "Stockland Corporation Ltd (ASX: SGP) – yields 5.7% unfranked, up 4.5% for the year

Based on its metrics, Stockland is the cheapest company in this article; it’s got a great dividend and its price has barely shifted in the past twelve months. However, this is because the company also invests heavily in property development in addition to shopping centre ownership.

Although Stockland boasts a strong track record of development and builds in residential growth corridors, it is exposed to rising interest rates and weakness in the domestic housing market, hence its subdued price. Despite this, SGP shares trade at a 15% premium to their NTA of $3.60/share, and I believe they are a reasonable long-term bet for income seekers."



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