The key risk to the achievement of our target price in our view is the next cyclical turning point and while the catalyst will be unknown, the effect is likely to cause rent decline and valuation yield expansion, both causing property valuations to fall dragging stock prices lower and potentially testing debt covenants. Types of risk inherent to property include tenant risk, location risk, sector risk, planning risk, legal risk, taxation risk, structural risk, liquidity risk, development risk, valuation and pricing risk, and listed securities have in addition the risk inherent with stock markets.
If the impact on the company from any of these factors proves to be greater or less than we anticipate, the stock will either outperform or underperform our target price.
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