2257 GMT - Australian mall owners have a structural advantage to withstand pressure on the consumer from rising interest rates, post-budget headwinds, and stress in the residential property market, contends Citi. It points to a 30-low in new supply meeting sustained population-driven demand. Analyst Howard Penny highlights record occupancy across the sector, positive leasing spreads, and limited evidence of tenants vacating. "In our view, these are not cyclical artefacts but structural conditions that should persist for at least 12-18 months given development pipeline lead times," Citi says. Charter Hall Retail REIT and Region's discounts to net tangible assets look difficult to justify, given the durability of underlying earnings. "Risks around discretionary spending and refinancing costs are well-understood and, in our view, broadly reflected in current pricing," says Citi.
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