ALZ 0.00% $4.46 australand property group

the next stockland?

  1. MJS
    2,207 Posts.
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    I'm almost surprised that noone has commented on Australand Holdings - or maybe it's just not enough of a glamour stock with potential triple in price. But for those that noticed they're putting a proposal to shareholders and unitholders in their property trusts to create a stapled security.

    Exciting? Boring probably. But, they anticipate distributions of 16.2 cents per stapled security for the 2004 calander year, should the proposal be fully implemented. On the current close of $1.76 this makes a yield of 9.2%, at least 1.5% higher than Centro or Stockland. Not bad for what I'd call a good company.

    If the stapling goes ahead, and they meet expectations, I believe there to be a good chance of a market re-rating of 10% - 20%, plus the distribution, plus whatever other growth they add. OK, not the 100% that we all love but for what I'd put in the non-speculative category not bad either.

    Happy investing

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