Management has indicated that earnings to date have not been materially affected by the pandemic. The total amount of rent waved over the three months period is less than $1m.
Having previously allowed for a -5% decline in rents Credit Suisse now assumes a -3% decline.
Despite a challenging economic climate the broker considers there is some defensiveness in the earnings.
The portfolio is weighted 31% to the industrial sector, with the balance being metropolitan office.
Outperform rating retained. Target is raised to $3.34 from $3.15.
Sector: Real Estate.
Target price is $3.34.Current Price is $3.36. Difference: ($0.02) – (brackets indicate current price is over target). If GOZ meets the Credit Suisse target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).