Following a better 1H result than Credit Suisse expected, largely driven by net acquisitions, SCA Property Group upgraded full year guidance. The adjusted funds from operations (AFFO) guidance moved to at least 15.2cps from 15.0cps.
This guidance assumes a further $1m of rent relief and no unannounced acquisitions in the 2H. The broker raises its target price to $2.94 from $2.83.
Credit Suisse points out earnings are highly predictable and expects upcoming modest organic FFO growth. The Neutral rating is maintained.
Sector: Real Estate.
Target price is $2.94.Current Price is $2.89. Difference: $0.05 – (brackets indicate current price is over target). If SCP meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
