According to UBS there is strong momentum across all parts of Goodman Group's (ASX: GMG) business, evident in 3Q18 update by the company. The strength in the business means the company deserves to trade at a premium to Net Asset Value and price-earnings- ratio (PER) premium to the sector. As Goodman Group is focused on quality developments in large urban cities, any development risks should be well managed. The shares are up 18% since February, when the company upgraded FY18 earnings per share to 8%.
Goodman Group is a property group involved in property investment, fund management, property services and property development. The shares are trading on a forward PER of 20 \x compared to the Real Estate Sector's PER of 15x. The annual dividend yield is 3% unfranked.
Scentre Group (ASX: SCG) is a property company focused on retail properties in Australia and New Zealand. The share price trades on a forward PER of 18x, paying an annual dividend yield of 5.3% which is 21% franked.
