Up until yesterday the Lendlease Group (ASX: LLC) share price was trading close to its multi-year high.
Unfortunately for its shareholders it is a very different story today. In morning trade the integrated international property and infrastructure company's shares are down 9.5% to $16.85.
Why have its shares tumbled lower?
After the market closed on Tuesday Lendlease announced the sale of 25% of its Retirement Living business to APG Asset Management and provided a market update.
According to the release, the sale of its Retirement Living business means that Lendlease will have to write down the value of certain deferred tax assets associated with it. This is expected to negatively impact the company by approximately $35 million after tax.
Further to this, although the company has had a solid start to FY 2018, the underperformance of its Australian construction business is expected to impact its full-year result.
This side of the business is forecast to deliver lower first-half EBITDA compared to the prior corresponding period.
While this is expected to be offset by outperformance in other parts of its business, it hasn't been enough to convince some shareholders not to jump ship today.
One broker which isn't overly positive following this announcement is UBS. According to a note out of the investment bank, its analysts have downgraded Lendlease's shares from a buy rating to neutral.
Should you invest?
While the underperformance of its Australian construction business is disappointing, I do think that today's sell-off is a little overdone.
At a little under 13x estimated FY 2018 earnings I think Lendlease could be classed as good value and worth considering ahead of industry peer Goodman Group (ASX: GMG).