Lend Lease Group (ASX: LLC) is not only one of Australia's leading property and infrastructure developer and manager but it also has a significant global presence.
The share price has fallen 15% in the past year and is currently trading less than 10% above its 52-week low. Significantly, the stock is down 26% from its 52-week high which could mean now is a good opportunity for investors to evaluate the stock more closely.
Here's why it could be time to turn bullish on the outlook for Lend Lease…
Appealing Growth Profile
Lend Lease provides investors with exposure to the key growth trends of urban regeneration and aging populations through world class assets such as Sydney's Darling Square and NorthConnex, London's The International Quarter and Rathbone Place, New York's 56 Leonard and Singapore's Paya Lebar Central. Lend Lease is also the largest owner and operator of retirement villages in Australia.
Appealing Metrics
With a development pipeline of $45 billion across residential apartments, residential communities and commercial property, a construction backlog of $17 billion and funds under management of $21 billion the group has a solid base on which to grow and to provide annuity style revenues.
Leveraged Across the Value Chain
Lend Lease has positioned itself to maximise value for shareholders by competing across the property and infrastructure lifecycle including via development returns, construction margins, investment management fees, asset management fees and co-investment returns.
The Bull Case
While a perfect comparison with Lend Lease is difficult, peers such as Stockland Corporation Ltd (ASX: SGP), Goodman Group (ASX: GMG), Mirvac Group (ASX: MGR) and Aveo Group (ASX: AOG) are all trading on higher 2017 forecast price-to-earnings ratios than Lend Lease's 11.2x – which arguably makes the stock appealing on both a relative and an absolute basis.