How long have you held the stock?
We initially entered Lend Lease towards the end of the GFC, after seeing the company secure a series of major development opportunities. We increased our weighting during the second half of 2013 as it became clear the housing market was accelerating and improvement in financial markets meant there was an increased appetite for its end product.
What do you like about it?
The business was in a strong financial position during the GFC, especially compared to its peers, and this enabled the group to acquire interests in some very significant projects. In recent years, management has made meaningful progress in repositioning the business to be a more integrated property group with strong quality characteristics. Despite this, Lend Lease has remained undervalued with perceptions towards the company soured by a decade of poor share price performance. Realisation of the value on offer has suffered by inclusion in the property sector, which means it is compared with companies of a very different nature and often covered by property trust analysts more used to valuing passive assets.