What did WAM Capital report?

• Full year FY2026 dividend of 15.5 cents per share, partially franked at 60%, maintained
• Final dividend of 7.75 cents per share, payable 21 October 2026
• Operating loss after tax of $125.9 million (FY2025: profit of $219.6 million)
• Investment portfolio declined 10.5% in FY2026, underperforming key ASX indices
• FY2027 dividend target reduced to 8.0 cents per share to preserve capital
• Pre-tax net tangible assets (NTA) at $1.22 per share at 30 June 2026

What else do investors need to know?

The Board's decision to cut the FY2027 dividend target to 8.0 cents per share comes after years of paying out more in dividends than was earned, drawing down the profits reserve from $1.48 per share to just 5.6 cents per share after the latest payout. The reduction aims to protect WAM Capital's capital base and rebuild its profits reserve.

In FY2026, WAM Capital's portfolio underperformed compared to the broader S&P/ASX All Ordinaries Accumulation Index (up 5.7%) and S&P/ASX Small Ordinaries Accumulation Index (up 8.1%). The main challenges were sector positioning and tough conditions for small-cap industrials, as larger companies and AI beneficiaries attracted most investor attention.

WAM Capital remains focused on a diversified portfolio, with notable holdings in Artrya Limited, GemLife Communities, Aussie Broadband, and Maas Group. The investment team has increased cash holdings (11.5% of the portfolio) and repositioned assets looking for better returns in FY2027.

What did WAM Capital management say?

Chairman Geoff Wilson AO said:

Since FY2020, the Board has maintained WAM Capital's full year dividend at 15.5 cents per share. Over that period, the dividends paid by the Board exceeded the profits generated, drawing down the Company's accumulated profits reserve. Maintaining the dividend at 15.5 cents per share is no longer sustainable with the profits reserve available.

We recognise the impact a reduction in the FY2027 full year dividend target to 8.0 cents per share will have on shareholders. The FY2027 target is intended to rebuild the profits reserve, preserve the Company's capital base and place WAM Capital in a stronger position to deliver sustainable income and capital growth for shareholders.

What's next for WAM Capital?

The Board has set a more sustainable FY2027 dividend target, aiming for 8.0 cents per share, split evenly between interim and final dividends, still partially franked at 60%. Achieving this will depend on generating additional profits through positive portfolio performance in FY2027, so the dividend target is not a formal forecast or guarantee.

Management is optimistic about the potential for recovery, particularly for undervalued smaller companies, as interest rates stabilise and market conditions improve. WAM Capital plans to maintain its active, diversified approach and is positioned to benefit if conditions for small-to-mid-cap stocks pick up.

View Original Announcement

The post WAM Capital trims FY27 dividend after portfolio setback in FY26 appeared first on The Motley Fool Australia.

What did GemLife report?

• Revenue of $195.1 million, up 86% on 1H25 Pro Forma and 36% ahead of Prospectus forecasts
• EBIT of $68.3 million, up 89% on 1H25 and 36% above forecast
• Underlying NPAT of $58.5 million, up 102% on 1H25 and 27% above forecast
• Statutory NPAT of $53.3 million, an increase of 59% on 1H25
• Inaugural annual distribution of 1.1 cents per security declared
• Gearing at 32.3%, within target range

What else do investors need to know?

GemLife delivered 208 home settlements in the half, up 75% on 1H25 and 16 above its Prospectus target. Average sale prices jumped 10% to $876,000, reflecting increased demand and more premium home sales. At 30 June, 52 further homes had been completed and sold, awaiting settlement in 2H26.

The company's development pipeline is strengthening, with 292 homes under contract and 78 additional expressions of interest, giving a total pipeline of 370 homes. GemLife also secured approvals for 593 more homes at three sites during the half, including its first South Australian community.

What did GemLife management say?

Founder, Managing Director and Group CEO Adrian Puljich said:

GemLife is pleased to have delivered a strong 1H26 result, exceeding our final Prospectus forecast period across key financial and operational metrics. This performance reflects our continued focus on product mix optimisation and execution, supporting both average sale prices and build margins, which have remained within our 47-52% target range for the eighth consecutive year. We believe this performance is underpinned by GemLife's premium market positioning and the efficiencies and cost savings generated through our vertically integrated business model, which has been refined over more than 40 years

GemLife now has a portfolio of 33 communities comprising 10,452 homes, providing clear visibility over future development activity in a sector supported by favourable demographic trends.

At GemLife, our focus remains on innovative and disciplined development execution through our fully vertically integrated platform, yielding greater capital velocity and sustained earnings growth. We are committed to delivering thoughtfully designed communities for our homeowners while generating long-term value for securityholders.

What's next for GemLife?

GemLife has upgraded its FY26 underlying EPS guidance to 30.0–31.0 cents, up from 28.5–30.0 cents previously. This implies growth of 27% to 31% over FY25, reflecting management's confidence in continued strong demand and the group's substantial pipeline.

Looking ahead, GemLife will continue focusing on its vertically integrated model and innovative community development. With more than 3,000 lots in development across 13 sites, the group is well-placed for growth in Australia's land lease community sector.

GemLife share price snapshot

Over the past 12 months, Gemlife shares have risen 9%, outpacing the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post GemLife beats forecasts and upgrades FY26 guidance appeared first on The Motley Fool Australia.

The S&P/ASX 200 Real Estate Index (ASX: XRE) is down roughly 10% year to date.

This sector in particular has been impacted by higher interest rates, tighter credit conditions, and reduced property valuations. 

These headwinds have all contributed to significant share price declines for many real estate stocks. 

However, it has also created buy-low opportunities for quality companies in the sector. 

One such opportunity is GemLife Communities Group (ASX: GLF). 

Company overview 

GemLife (GLF) is a developer, builder, operator and owner of over 55s lifestyle (land lease) communities (LLC). 

GLF generates recurring rental income from c.2,000 occupied homes and development profits from a further c.8,000 development sites representing 10+ years of pipeline.

Its share price has fallen almost 10% in 2026. 

However the team at Bell Potter is tipping a rebound following the company's promising AGM operating update.

Tracking to expectations

GemLife Communities said at its AGM that trading is continuing broadly in line with expectations. 

The company reaffirmed its CY26 guidance, expecting earnings per share of 28.5c to 30.0c and around 420 property settlements. This is largely consistent with Bell Potter and market forecasts.

Management said average selling prices are tracking in line with, or slightly above, the second half of CY25 levels, while home build margins are expected to remain around 50%, similar to last year. The company also noted that settlements are continuing to track positively against its full-year target.

Bell Potter made small adjustments to its earnings forecasts for CY26-28 to account for higher expected development and operating costs, as well as updated interest rate assumptions. 

Overall, Bell Potter revised CY26-28 EPS forecasts by between -8% and +1%, reflecting lower margin assumptions due to higher development costs in CY27/28. 

Strong upside remains according to Bell Potter

Based on this guidance, the team at Bell Potter moderately reduced its share price target to $5.65 (previously $6.15). 

From yesterday's closing price of $4.59, this indicates an upside potential of 23%. 

There is still some water to go under the bridge this year, but GLF's initial guidance range remains achievable in our view with our focus on the ground work for CY27 given likely lower housing turnover due to budget driven residential housing uncertainty and potential for cost inflation contributed by Brisbane Olympics in 2030.

We continue to monitor sales progress vis-à-vis cashflow and the balance sheet (29.5% as at CY25), but today's update is encouraging and consistent with our expectations.

The post Why this ASX real estate stock is a compelling buy according to Bell Potter appeared first on The Motley Fool Australia.

Three ASX shares that have just been upgraded to buy ratings are listed below. Here's why it has become bullish on them:

GemLife Communities Group (ASX: GLF)

Morgans has turned more positive on this retirement living company following a period of share price weakness.

This has seen the broker upgrade its shares to a buy rating with a $5.66 price target. It said:

The recent share price weakness looks overdone in our view. We have used the pullback as an opportunity to reassess key assumptions (ASP, settlement volumes, home build margins and gearing) in the context of the Iran conflict, a higher rate outlook, softer auction clearance rates and renewed cost inflation concerns. Ultimately, we remain enthused and our investment thesis is unchanged. We take the opportunity to upgrade our ACCUMULATE recommendation to BUY.

Judo Capital Holdings Ltd (ASX: JDO)

Another ASX share that has been upgraded by analysts at Morgans is small business lender Judo Capital.

Morgans has upgraded Judo Capital's shares to a buy rating and estimates a potential return of almost 50% over the next 12 months. It said:

JDO provided a 3Q26 trading update, which included reaffirming its FY26 earnings guidance range albeit now expected to be at the bottom end of the range given it conservatively topped up its expected loan loss provision. We view JDO's recent share price weakness as a buying opportunity for a stock with high growth potential, increasing the margin of safety for the investment. Upgrade from ACCUMULATE to BUY. Potential TSR at current prices is c.49%.

Regis Resources Ltd (ASX: RRL)

A third ASX share that Morgans has upgraded is gold miner Regis Resources.

In response to a strong quarterly update and recent pullback in its share price, Morgans has upgraded its shares to a buy rating with a $10.07 price target. It said:

Gold sales of 89.1koz at an AISC of A$2,807 beat our expectations whilst performing in line with company guidance, delivering revenue of A$622m at an average realised price of A$6,977/oz. RRL continues to build a substantial cash balance, adding an additional A$198m bringing the total to A$1.12bn.

Replenished ounces with group MRE exceeding 10% yoy resource growth underpinning future production. We upgrade to BUY (from HOLD) following recent weakness across the gold sector which we believe has uncovered value in RRL underpinned by attractive immediate term cash generation paired with a structured capital management framework.

The post 3 ASX shares upgraded by Morgans to buy ratings appeared first on The Motley Fool Australia.

Here's what the broker had to say. 

Gemlife Communities Group (ASX: GLF)

GemLife Communities Group is a developer, builder, owner, and operator within Australia's Land Lease Community (LLC) sector.

This All Ords stock has fallen almost 10% year to date, however, fresh analysis from Morgans indicates it could rebound. 

The recent share price weakness looks overdone in our view. We have used the pullback as an opportunity to reassess key assumptions (ASP, settlement volumes, home build margins and gearing) in the context of the Iran conflict, a higher rate outlook, softer auction clearance rates and renewed cost inflation concerns.

The broker remains confident in the company's near-term and long-term earnings growth prospects. It has upgraded the stock to a buy (previously accumulate).

Firstly, the demand thematic remains favourable, supported by a lack of downsizing options for an aging population and a customer cohort less exposed to financing and affordability pressures than other residential segments. Second, GLF's pipeline and current level of development activity leave the business well placed to capitalise on this demand and drive meaningful volume growth over the next few years.

Lastly management has built a robust business model, characterised by low inventory risk, a vertically integrated platform and a demonstrated track record of managing home build margins through varying cost environments which we believe position GLF well to navigate the current operating landscape.

The broker has a target price of $5.66 on this ASX All Ords stock, which indicates an upside potential of 23% from yesterday's closing price. 

MA Financial Group Ltd (ASX: MAF)

This ASX All Ords stock is a diversified financial services company, specialising in managing alternative assets, lending, corporate advisory, and equities.

Its share price has fallen significantly in 2026, by more than 30%.

Yesterday, it released its 1Q26 Operating Update.

This included an increase in assets under management (AUM) of 44% on 1Q25 to $14.8 billion. 

Management noted total AUM was down 3% over the quarter, largely due to the previously flagged sale process of Marion shopping centre. 

It said this will have an immaterial impact on FY26 revenue owing to the nature of this single client mandate.

Following the release, the team at Morgans said the key takeaway from the quarterly, in its view, was a softer Asset Management performance. 

The broker said this was impacted by market volatility, which overshadowed continuing robust MA Money loan book growth. 

As a result, the broker downgraded earnings per share (EPS) by 6% to 7% for FY26 and FY27. 

Our price target is revised to A$10.93 (from A$11.69). MAF has demonstrated consistent delivery in recent periods and, in our view, is well placed to deliver strong long-term growth. With >20% upside to our price target following recent share price weakness, we maintain our BUY call.

Despite the lowered price target, there remains an estimated 45% upside for this All Ords stock from yesterday's closing price of $7.53. 

The post Two ASX All Ords shares with 20% to 45% upside according to Morgans appeared first on The Motley Fool Australia.

Sometimes it's the under-researched, smaller businesses that can outperform large ASX blue-chip shares over the long-term because they have a stronger growth runway, yet they're not priced for that level of success.

The two businesses I'm going to talk about are ones that the investment team in charge of the listed investment company (LIC), WAM Capital Ltd (ASX: WAM), likes.

That LIC is looking to find the most compelling undervalued growth opportunities in the Australian market. Let's look at those the WAM team recently highlighted in a monthly update. 

Cobram Estate Olives Ltd (ASX: CBO)

The Wilson Asset Management (WAM) investment team describes Cobram Estate Olives as a leading Australian food and agribusiness company that specialises in olive farming, the production and marketing of premium-quality extra virgin olive oil.

The Cobram Estate Olives share price rose in March after completing the acquisition of California Olive Ranch, expanding its US footprint, and increasing exposure to a large, growing premium olive oil market. The deal was recently given US anti-trust approval, which had been an overhang on the deal.

This acquisition is expected to more than double the ASX share's Californian footprint, broaden its customer base, and deliver "meaningful operational synergies and earnings growth over time".

WAM said the Cobram Estate Olives share price rose during March because of reduced execution risk, improved visibility on transaction completion, and confidence in the long-term growth profile of the enlarged US-focused business.

According to the forecast on CMC Invest, the business is valued at 24x FY27's estimated earnings.

GemLife Communities Group (ASX: GLF)

Another business that WAM likes – and it was a top 20 position in the WAM Capital portfolio at the end of March 2026 – is GemLife Communities.

This ASX share is a developer, builder, owner, and operator in Australia's land lease community (LLC) sector. It provides resort-style communities for homeowners aged 50 and over.

During March, the GemLife Communities share price fell 17%, partly because the business released its FY25 results after a period of strong performance following its listing on the ASX in July 2025.

WAM believes the pullback reflected a combination of investor profit-taking and broader market weakness in interest rate-sensitive real estate stocks amid ongoing interest rate uncertainty.

Despite the pullback, the fund manager remains "positive" on the group's outlook, supported by a strong development pipeline, favourable demographic tailwinds, and an integrated operating model that "underpins recurring revenue and margin expansion".

Solid sales momentum and disciplined capital management further support WAM's view that the ASX share can deliver long-term earnings growth.

The post 2 little-known ASX shares that could make big returns appeared first on The Motley Fool Australia.

Fund managers at Wilson Asset Management picked the business as one to keep an eye on. It was one of the largest 20 positions in the portfolio of listed investment company (LIC) WAM Research Ltd (ASX: WAX) at the end of February 2026.

WAM Research aims to own the most compelling undervalued growth opportunities in the Australian market. It also holds stocks such as Aussie Broadband Ltd (ASX: ABB), Gentrack Group Ltd (ASX: GTK) and Tuas Ltd (ASX: TUA).

Let's take a look at why GemLife is an attractive business to own.

What does GemLife do?

The ASX share is not one of the most well-known businesses on the ASX. The fund manager described the business as an Australian 'pureplay' developer, builder, owner and operator in Australia's land lease community (LLC) sector, delivering resort-style communities for homeowners aged 50 and over.

WAM notes that it has more than 30 communities and projects across Australia, primarily spanning Queensland, New South Wales and Victoria.

FY25 result

The fund manager was pleased to see that the business announced a "positive" FY25 result in February, reporting robust growth and declaring that its performance had exceeded prospectus forecasts.

Revenue grew by 5.8% to $281.7 million, underlying operating profit (EBITDA) climbed by 9.4% to $110 million, and underlying net profit increased 10.1% to $90 million.

WAM also highlighted that GemLife announced positive capital management initiatives, refinancing existing debt to improve the organisation's balance sheet.

Its $700 million debt facility was originally scheduled to mature in June 2029. This has been refinanced into three tranches with staggered maturities. The cost of debt was also renegotiated, reducing the overall cost by 25 basis points (0.25%) compared to the previous facility.

Positive outlook for the ASX share

Turning to FY26, the business is focused on delivering active sites, providing identifiable earnings growth over the coming years.

It's expecting its underlying earnings per security (EPS) to grow by between 20% to 27% in 2026, reaching between 28.5 cents and 30 cents.

Upfront infrastructure works are expected to be delivered at several new communities, leading to a greater number of active projects contributing to settlements from FY27 onwards.

At 31 December 2025, there were 300 homes completed or under construction, up from 260 at 30 June 2025. It expects to settle over 420 homes in FY26, though the focus will continue to be on underlying earnings and profitability to support the ASX share's organic growth strategy.

The post Experts like this ASX share which expects to grow its profit by at least 20% this year! appeared first on The Motley Fool Australia.

Listed below are two more Australian shares that the broker has just named as best buys for the month ahead. Here's what it is saying about them:

Elders Ltd (ASX: ELD)

The first ASX share that Bell Potter has recommended as a best buy this month is Elders.

It is a leading agribusiness and rural services company providing a diverse range of services to rural and regional Australia. Bell Potter notes that this includes livestock and wool agency and marketing, real estate services, agricultural supplies, financial services, and insurance.

The broker believes that Elders' shares are looking cheap at current prices and feels that the market is undervaluing the recent acquisition of Delta Agribusiness. In addition, it sees scope for potential upside catalysts and a strong dividend yield for income investors.

Commenting on its bullish view of the stock, Bell Potter said:

We see value in ELD, particularly with the market appearing to undervalue the pending Delta acquisition. The base business is performing well with multiple growth drivers including recovery from drought conditions, system modernisations, and backward integration benefits. We are attracted to ELD's valuation, which is relatively cheap at 12x 12MF P/E, along with these potential upside catalysts and a strong dividend yield.

GemLife Communities (ASX: GLF)

Bell Potter has added this over 50s lifestyle communities developer to its best ideas list this month.

It believes the company is well-placed to benefit from Australia's ageing population and expanding retirement living sector. In fact, Bell Potter estimates that GemLife could deliver a three-year earnings per share compound annual growth rate of 15%.

Commenting on the company, the broker said:

We add GemLife Communities (GLF) to the Small Cap Panel as a high-quality exposure to Australia's ageing population and expanding retirement living sector. The business benefits from an experienced, family led management team with strong alignment through ~43% ownership, supporting long term strategic execution.

With a strong development pipeline and settlements expected to ramp, we forecast a +15% 3 year EPS CAGR, and see the CY25 result as the next major catalyst. The stock looks attractive trading at ~15x FY27 earnings and we anticipate a re-rate as recurring income becomes a bigger contributor of earnings and the market better recognises the resilience and scalability of the model.

The post Bell Potter names more of the best ASX shares to buy in February appeared first on The Motley Fool Australia.

The company is a vertically integrated operator of land lease communities for residents over 50 years old. Revenue comes from developing and selling manufactured homes and collecting rent on the underlying land.

The Australian retirement resort operator debuted on the ASX back in July with an IPO of $4.16 per share. 

Since then, it has lifted more than 15% and closed Thursday's trading at $4.82. 

Bell Potter released a report yesterday, placing a buy recommendation on this ASX real estate stock. 

Let's examine what was behind the attractive valuation. 

Bell Potter believes in this premium business 

The broker believes the business is well placed to capture a share of Australia's aging population in the living sector. 

Bell Potter said it is unique amongst peers with an internal construction team, enabling sector leading development margins and the ability to dynamically meet demand (upwards or downwards), and manage risk via increased visibility and capital management (i.e. developing multiple stages concurrently, or switching off).

The broker also reinforced confidence in its experienced management team. 

The Puljich family are well regarded industry operators, with significant skin in the game (mgmt. c.43% of SOI incl. Thakral family) and alignment to drive shareholder value over the long term.

Forecasting ahead, Bell Potter has an optimistic view on earnings. 

It forecasts a +15% 3yr EPS CAGR for GLF, driven by increased development (BPe 16 active communities in CY27 vs 10 today) and settlement ramp up (BPe +16% 3yr CAGR to 451 settlements CY27), with sector leading gross build margins (c.50%). 1yr forward PE of 17.4x drops to 14.7x CY27 as development completions build out passive earnings contribution.

Attractive valuation 

Bell Potter has placed a buy recommendation on this ASX real estate stock and a price target of $5.55. 

This indicates an upside of 15.15% from yesterday's closing price of $4.82. 

The broker said Gemlife Communities Group is a high-quality and well-managed business that is at an attractive entry point as it transitions from a 'restocking' phase into one of strong growth. 

Bell Potter reinforced the business is already tracking ahead of PDS expectations, and we see the CY25 result as the next major catalyst. 

The post Bell Potter says this ASX real estate stock is a buy with 15% upside appeared first on The Motley Fool Australia.

The broker has named a number of stocks it sees as good buys in the current market, pointing out that many of these companies are under-researched by brokers and operate in higher-growth sectors of the economy.

Compared to the ASX 100, the Small Ords index is far less concentrated and is less tilted towards growth-challenged sectors such as banks and iron ore. While just the banks and iron ore comprise about 38.5% of the ASX 100, these low growth sectors account for just around 1.5% of the Small Ords. While passive flows into banks (and other blue chips e.g. Wesfarmers) have supported the ASX 100's outperformance prior to this year, we believe this will unwind as valuations remain overstretched, particular considering their meagre growth outlooks.

As a result of being covered by fewer analysts, and traded by fewer investors, there was a higher degree of mispricing among smaller stocks, Wilsons says, and it also argues there are more merger and acquisition targets.

The broker also argues that small-cap stocks benefit disproportionately from rate cuts, as they are more exposed to cyclical sectors such as consumer and retail and carry more debt.

While small caps have outperformed since February as investors acknowledge the earnings boost provided by rate cuts, valuations have yet to overrun and still provide an attractive entry point.

Wilsons favours stock feed and fertiliser company Ridley Corporation Limited (ASX: RIC), saying it was reinvesting to support growth, and had made a highly accretive fertiliser acquisition.

RIC screens attractively at a forward price to earnings of 19x while offering three-year earnings per share compound annual growth rate of 15%. Management has been focusing on acquiring, expanding and de bottlenecking stock feed mills, adding incremental capacity. Increasing its scale also lowers the cost per tonne of feed, improving its unit economics and helping defend margins in a competitive market.

Wilsons also likes medical device infection solutions company Nanosonics Limited (ASX: NAN), saying the core TROPHON business is well-positioned and has an upcoming product launch.

Wilsons is predicting compound annual earnings per share growth of 21% for five years for Nanosonics.

With its recent FDA approval, CORIS, the first device cleared for automated cleaning of flexible endoscopes, is set to launch in FY26 and deliver material earnings upside.

Other companies favoured by Wilsons include Maas Group Holdings Limited (ASX: MGH), GemLife Communities Group (ASX: GLF), and Autosports Group Limited (ASX: ASG).

The post It's time to buy these ASX small-cap stocks Wilsons says appeared first on The Motley Fool Australia.

To narrow things down, let's take a look at three that Morgans has just named as buys. They are as follows:

betr Entertainment Ltd (ASX: BBT)

Morgans remains bullish on this sports betting company and sees it as an ASX share to buy.

It has put a buy rating and 42 cents price target on its shares. It explains:

We have updated our model to incorporate BETR Entertainment's (BBT) sizeable minority stake in PointsBet Holdings (PBH) into valuation. This adjustment improves transparency around how the PBH position flows through to equity value. No changes to operating assumptions for the core business are made as part of this event. Our target price increases to $0.42 (from $0.38). We retain a Buy recommendation. BBT is scheduled to release its FY25 result on 28 August.

DigiCo Infrastructure REIT (ASX: DGT)

This data centre operator could be an ASX share to buy according to Morgans.

It has put a buy rating and $4.85 price target on its shares, which is notably higher than its current share price of $2.76.

While disappointed with its FY 2025 results and guidance for the year ahead, the broker remains positive and sees potential for a material lease transaction to unlock value. It explains:

DGT's FY25A result fell short of investors' expectations, providing little in the way of quantitative earnings guidance for FY26, as EBITDA growth remains dependent on the timing of new contract commencements, renewals and remixing of existing capacity. The company does however expect to add an additional 6MW of capacity at SYD1 by Jun-26, which we estimate could see EBITDA increase >20%, once billing.

Investors are demanding tangible evidence of leasing progression, whilst management have been, until now, largely hamstrung by approvals and construction timings. Whilst we appreciate the frustration, we remain of the opinion the asset can lease-up, with a material lease transaction the catalyst to unlock value. On this basis, we retain our BUY rating at $4.85/sh price target.

GemLife Communities Group (ASX: GLF)

A third ASX share that gets the thumbs up from Morgans is GemLife. It is a provider of resort style living for homeowners aged 50 and over.

The broker has initiated coverage on its shares with a buy rating and $5.25 price target.

Morgans believes that the company is well-placed to benefit from growing demand from the downsizer market and insufficient future supply from land lease community (LLC) operators. It said:

With growing demand from the aging 50+ housing downsizer market and insufficient future supply from Land Lease Community (LLC) operators, we believe GLF is positioned to grow earnings as it builds out an extensive portfolio of 9,836 sites across the eastern seaboard. Whilst GLF trades at a price-to-earnings multiple (FY26) discount to its two nearest peers (INA and LIC), we believe GLF can establish itself at the ASX's premium single focus LLC operator.

GLF's free cash flow positive model and capacity to fund growth ambitions from retained earnings, should see the business grow faster than peers, without needing to seek additional capital. As a result, we initiate coverage with a BUY recommendation and a 12-month target price of A$5.25/sh, based on a blended average of PER, SOTP and DCF.

The post Morgans says these top ASX shares are buys appeared first on The Motley Fool Australia.