Aged accommodation market

Which would you say represents the best prospect for the aged accommodation market, AOG or GTY?

A: I have to admit that I am not really across the aged care property sector. I don’t have firm opinions about Aveo or Gateway.

According to FN Arena, sentiment for Aveo (AOG) is +0.7 (scale -1.0 is most negative, to +1.0 being most positive). The consensus target price $3.18, about 7% higher than the current price. It is trading on a forecast FY PE of 18.3 times, yield 2.7%

For Gateway, the broker sentiment is +1.0. Target price is $2.91, about where it is currently trading. FY16 PE of 16.5, forecast dividend yield (unfranked) of 4.6%.


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