Sp seems to be moving up again. Still my favourite reit atm and...

Sp seems to be moving up again. Still my favourite reit atm and will be for some time. Also Foot traffic slowly increasing in the malls again which is definitely a positive and some of the major retailers focussing on reopening their stores as well which is a very good sign. A 20%reduction in Directors’ fees and Executive Committee salaries. A cut to staff hoursand salaries. Deferred all non-critical capital expenditure. $1.3billion of availableliquidity and the company also mentions that it has an ongoing program to reduce costs. Seems like management are all over it which is a good sign. I think there is still some good upside potential for vcx in the short to medium term. Jp morgan seems to have recently upgraded vcx as well.

https://www.********.au/2020/05/07/the-latest-3-asx-buy-ideas-from-top-brokers/

On the shopping list

Another stock that looks oversoldin JP Morgan’s eyes is shopping centre owner Vicinity Centres(ASX: VCX).

While the company’s latest updateshowed an unsurprising slide in retail sales as shops closed to stem the virusoutbreak, the number of operating stores are increasing as Australia loosenssocial restrictions.

“We believe VCX has been oversold(-45% ytd vs ASX REITs -28%); we recently upgraded it to Overweight and have a$1.80 Price Target,” said the broker.

“VCX trades on just 9x FY22Estabilised FFO [funds from operations] and offers a ~10% FY22E DPS yield. Webelieve its balance sheet can withstand our assumed 30% impairment in assetvalues.”