I read the same report through my Commsec account. It was saying that the land value alone of SCG's properties is worth 11% (I'm not sure?) more than the current share price even if every building were demolished. That's the appeal of its real estate locations in Australia.
I stupidily took a very aggressive stand on a supposedly safe, conservative property trust in 2007 and was left watching in disbelief and horror as the GFC happened and took years of savings away. The only thing I did right was to buy another $5,000 worth after I'd lost 85-90% of the value to average down, then not sell until 2016. It's not an experience I ever wish to repeat again, so I don't want to get caught up in another financial mess - especially if/when JobKeeper ends or the virus gets worse and the recover is W shape with a long depression. This personal perspective shouldn't affect other buyers.
Logically though, this is a raging buy. Even if yield is cut in half for years (impossible) it's still a highly attractive yield at $2.12. If properties are re-valued and NTA falls 20% (unrealistic) there's so much margin for error here I can't see how a buyer can go wrong. With interest rates at zero, when volatility decreases and the virus disappears (it will) SCG will look very, very attractive and the same useless commentators currently advising against buying SCG will be telling everyone to buy it then taking credit when the SP goes to $4.00. It happens every time.
I think the current price is, for the large part, an emotional response from sellers akin to the emotional response from buyers who are pushing Afterpay to ridiculous levels. Sentiment changes quickly. I'll be buying some SCG but won't be getting in too deeply this time.
Commsec
SCG Price at posting:
$2.12 Sentiment: Buy Disclosure: Not Held
(20min delay)