UBS is factoring in GPT Group spending $1bn on logistics over the next 5 years given the group’s development pipeline expansion and recent track record. The broker believes this will see logistics increase to 28% of assets in 2025.
As of December, GPT Group’s asset allocation is in line with the strategic weightings of retail 40%/office 40%/ logistics 20%, observes UBS. The broker expects this to be reset going forward with logistics up to 33%.
Neutral rating with the target rising to $4.80 from $4.55.
Sector: Real Estate.
Target price is $4.80.Current Price is $4.66. Difference: $0.14 – (brackets indicate current price is over target). If GPT meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).