Stock Name: K-REIT
Company Name: K-REIT ASIA
Research House: Nomura
The house raises its office rent assumptions and expects rents to rise by 7.5%-10% in 2011. Nomura raises price targets for CapitaCommercial Trust (C61U.SG) to $1.81 from $1.68, K-REIT Asia (K71U.SG) to $1.76 from $1.62, and Suntec Real Estate Investment Trust (T82U.SG) to $1.89 from $1.72, on the view these companies could benefit from rental growth on stronger demand and falling vacancies; the house keeps a Buy rating on all the three.
Company Name: K-REIT ASIA
Research House: Nomura
Singapore’s office property market is likely to remain bullish after a faster-than-expected 19.9% on-year pick-up in rents in 2010, says Nomura, citing strong pre-commitment demand in 4Q10 and increasing enquiry levels among tenants looking to upgrade.
The house raises its office rent assumptions and expects rents to rise by 7.5%-10% in 2011. Nomura raises price targets for CapitaCommercial Trust (C61U.SG) to $1.81 from $1.68, K-REIT Asia (K71U.SG) to $1.76 from $1.62, and Suntec Real Estate Investment Trust (T82U.SG) to $1.89 from $1.72, on the view these companies could benefit from rental growth on stronger demand and falling vacancies; the house keeps a Buy rating on all the three.
“In our view, pre-commitment demand has been supported by genuine expansion requirements, the quest for contiguous office stock and the requirement by tenants to upgrade office facilities,” says Nomura.
CapitaCommercial Trust is +1.4% at $1.49, K-REIT Asia is flat at $1.42 and Suntec is +1.9% at $1.63.
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