The company has recently revalued the portfolio, now $327m, and the weighted average cap rate is 7.12%. Morgans observes the company offers exposure to east coast office and industrial property at an attractive distribution yield.
Morgans forecasts an FY19 distribution of 9c per share and retains an Add rating. Target is raised to $1.30 from $1.26.
Sector: Real Estate.
Target price is $1.30.Current Price is $1.20. Difference: $0.10 – (brackets indicate current price is over target). If GDF meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).