Management has reaffirmed FY18 guidance for 2% growth in distributions. There was also an improvement in specialty sales numbers during the September quarter.
Despite occupancy levels above 99.5%, Deutsche Bank remains cautious on the retail sector, suspecting a much tougher leasing environment.
Hold rating and $4.27 target maintained.
Sector: Real Estate.
Target price is $4.27.Current Price is $4.01. Difference: $0.26 – (brackets indicate current price is over target). If SCG meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).