Lendlease Global Reit | Alpha Quadrant by The Fifth Person

Questions › Category: Investor Psychology › Lendlease Global Reit

Wong Ee Meng asked 3 years ago

Hi, I'm looking at Lendlease with doubled revenue, EPS .04, debt 0.39%, ROE 0.045. Are there other financial data that I should check. The price has dropped XD to $0.625 paying dividends of $.04 annually. Thanks

3 Answers

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Rusmin Ang Staff answered 3 years ago

Hi Ee Meng Lendlease is a dividend stock, not growth stock. Don't be fooled by their revenue growth as they can grow it easily through acquisition but may not necessarily yield accretive. For REIT, we will need to look at their DPU and NAV as well. It is a big topic honestly but if you're interested on how to invest for income/REIT/bank, we cover them under DividendMachines (closed for registration at the moment). Not doubt that their underlying assets are good but their gearing is relatively on high at 50% if we include their perpetual securities. So it is quite high in my opinion. For REIT, we usually make sure that REIT has gearing ratio of less than 40% for conservative reason.

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Wong Ee Meng answered 3 years ago

Thanks Rusmin for the pointers, much appreciated.

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Wong Ee Meng answered 3 years ago

Another question: Could the change in chairperson cause a sell off , or is it a XD phenomena?

Rusmin Ang Staff replied 3 years ago

Could be XD phenomena but it drops more than dps amount. So I believe the weak market sentiment on REITs plays a part too.

Wong Ee Meng replied 3 years ago

thanks Rusmin :)