Wilson analysts tip 2 small-cap ASX real estate shares to buy for juicy returns

After ten monster interest rate rises over the past year, the real estate sector, as well as ASX real estate shares, has really taken a hammering. But with the Reserve Bank nearing the end of its rate hike campaign, is it now time to pick up some bargains? Wilson Asset Management senior equity analyst Shaun Weick has a couple of small-cap ideas:

Ready to cash in on ‘a very strong second half’

Lifestyle Communities Ltd (ASX: LIC) shares have been severely impacted by the weak sentiment for real estate, dropping almost 25% since 3 February.

But Weick reckons it can “buck the trend” of the negativity surrounding the property market. “That’s a buy for us. We think stabilisation in interest rates is within sight, and that will put a floor under housing market sentiment,” he said in a Wilson video.

Lifestyle Communities provides residential communities for elderly clients. Weick feels like it will have a bumper finish to the 2023 financial year. “The company has reiterated their FY23 settlements guidance, which implies a very strong second half and the FY24 period,” he said.

“[This] is at the same time when the communities under release is more than doubling, which will drive a material acceleration in earnings growth from here.” After the recent dip, the share price is now looking ripe for pickups. “The valuation on the stock is screaming attractive, at 17 times earnings with significantly above-market earnings growth.”

An undiscovered gem

Qualitas Ltd (ASX: QAL) is a real estate investment manager that deals with private credit and equity in commercial property.

“Qualitas is undiscovered, much like the private credit space. We think it’s a buy.” The crisis in confidence in the sector has also impacted the Qualitas share price, causing it to freefall more than 18% since 13 March.

But the “underlying quality” is “very high”, according to Weick, citing 60% growth in its latest results. “The banks are continuing to retreat from the private credit space, which is underpinning very strong deployment opportunities,” he said.  “And globally, you’re seeing institutional investors want to access a nascent asset class here in Australia.”

The private credit industry also benefits when the official cash rates rise.

Weick is not the only one bullish about Qualitas.

According to CMC Markets, all three analysts currently covering the stock rate it as a strong buy.

Tags:

bristol-aquarium listed on couponmatrix.ukfree-now listed on couponmatrix.ukhotter-shoes listed on couponmatrix.ukhype listed on couponmatrix.ukmobiles-co-uk listed on couponmatrix.uktwo-wests-and-elliott listed on couponmatrix.uk
bristol-aquarium listed on couponmatrix.ukExplore the briny depths right in the heart of the city at Bristol Aquarium. Teaming with tropical creatures, including sharks, rays and fishes from around the world, this is the ultimate educational (yet fun!) day out. Offering concession tickets, family discounts and free entry for toddlers, Bristol Aquarium is the perfect family day trip – especially if you bag a Bristol Aquarium discount code from Groupon. See more of the sea right in the heart of Bristol, and get ready for your aquatic adventure!
free-now listed on couponmatrix.ukPair yourself up with the next ride home with the experts at FREE NOW, the European transport company that’s been connecting customers with licenced taxis for over ten years. Available in selected cities across the countries, you can make your convenience cheap to boot with a FREE NOW promo code from us. Hard night on the town, after-work party or a day out with the family, whatever your situation may be, let Free Now get you home.
hotter-shoes listed on couponmatrix.ukLevel up your shoe game and inject some much-needed inspiration into even your most tired outfits with Hotter Shoes, the high-street brand with incredible comfort credentials! Use a Hotter Shoes discount code on your next order and you’ll be able to get everything from ankle boots to deck shoes without blowing your budget. Look after your feet in true style with these fashionable designs from Hotter Shoes.
hype listed on couponmatrix.ukA symbol of modern clothing, Hype owes its success and explosion into casual fashion to social media – where its first batch sold out within hours. Beginning as a T-shirt only retailer, Hype now stocks an array of clothing including jackets, jeans, sweatshirts and plenty more, all waiting to be reduced with a Hype discount code. You’re also welcome to explore the Hype accessories selection, including summer sunglasses and winter scarves to keep you stylishly practical the whole year round.
mobiles-co-uk listed on couponmatrix.ukTo make sure that you get a good phone with a competitive rate from a well-trusted brand, then you should visit Mobiles.co.uk where you can find thousands of mobile phone packages and options that will be just right for you. Whether you are looking for a reliable brick for work, or want a family phone contract, you will be able to search on their site and come up with an easy solution. The best thing about this site is of course the incredible range of mobile phones, contracts, upgrades, pay-as-you-go offers and more that are available. Whether it is the latest smartphone you are looking for, or you want a reliable phone just for texts and phone calls, use your Mobiles.co.uk voucher code to shop for less.
two-wests-and-elliott listed on couponmatrix.ukTurn your garden into your own Eden with Two Wests & Elliott, the brand that provides equipment and advice on all things gardening. Whether you want a gardening apron to keep the dirt at bay or a new shed to house your growing collection of tools, a Two Wests & Elliot discount code is all that’s required to guarantee a great deal on top quality gardening gear. So next time your outdoors beckon, give it the deluxe treatment with Two Wests & Elliott. At Groupon, we understand that your garden is important to you. That's why we work hard to find the best Two Wests discount codes and deals, so you can get the gear you need to make it your own Eden. Whether you're looking for a new shed or just a gardening apron, we've got you covered. So next time your outdoors beckon, give them the deluxe treatment with Two Wests – and don't forget to use a Groupon discount code to save even more. Give your plants a welcome place to grow with a Two West greenhouse. Expect designs in all shapes and sizes to suit gardens both big and small, with a Two West voucher code ensuring you get the perfect fit for a fraction of the price. Pick your preferred material – be it glass, fabric or mesh – and then opt for either a permanent or pop-up model to suit your lifestyle, then sit back and watch your sprouts form into full-fledged fauna.