The biggest headwind is interest rates. Interest payments were almost 4 times higher in FY22 vs FY21. These will get worse before they get better. The higher interest payments will cancel out some of the gains mentioned in your post. This is why I based my investment on a flat FY23 vs FY22. However I expect this to be the base case and DDR will likely beat last years result.
At $8 DDR was trading at a PE of 16 on my estimate of FY24 earnings. Provided the company can grow at high single digits mid to long term, a PE of 16 on next years earnings is an incredibly good buy in my books for a low growth company.
The biggest risk to earnings in the short term is higher interest rates but this is only a short term risk and doesn't affect mid to long term returns.
Ann: Investor Presentation, page-25
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Last
$9.41 |
Change
-0.130(1.36%) |
Mkt cap ! $1.698B | |||
| Open | High | Low | Value | Volume |
| $9.69 | $9.69 | $9.40 | $1.527M | 161.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 250 | $9.40 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $9.46 | 1629 | 2 |
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| Last trade - 16.10pm 10/10/2024 (20 minute delay) ? |
| DDR (ASX) Chart |