Stock Name: Starhill Gbl
Company Name: STARHILL GLOBAL REIT
CIMB in a June 3 research report says: "Starhill's portfolio is dominated by mid-to-high-end retail properties located in prime shopping districts in countries including Singapore and Malaysia.
"While its overseas exposure could increase risks and the Orchard Road retail outlook is less positive, we believe these could be somewhat mitigated by master leases and long leases in its portfolio.
"Near-term organic growth could come from upward rental reviews for its Toshin and David Jones master leases this year and asset-enhancement plans while low asset leverage at 30% leaves room for acquisitions without the need for substantial equity fund-raising.
"At FY2011 DPU yields of 6.7% and P/BV of 0.7x, Starhill is also the cheapest retail REIT under our coverage. DDM-based target price of 74 cents (discount rate 8.4%). OUTPERFORM (initiating coverage)."
Company Name: STARHILL GLOBAL REIT
| Research House: CIMB | Price Call: BUY | Target Price: 0.74 |
CIMB in a June 3 research report says: "Starhill's portfolio is dominated by mid-to-high-end retail properties located in prime shopping districts in countries including Singapore and Malaysia.
"While its overseas exposure could increase risks and the Orchard Road retail outlook is less positive, we believe these could be somewhat mitigated by master leases and long leases in its portfolio.
"Near-term organic growth could come from upward rental reviews for its Toshin and David Jones master leases this year and asset-enhancement plans while low asset leverage at 30% leaves room for acquisitions without the need for substantial equity fund-raising.
"At FY2011 DPU yields of 6.7% and P/BV of 0.7x, Starhill is also the cheapest retail REIT under our coverage. DDM-based target price of 74 cents (discount rate 8.4%). OUTPERFORM (initiating coverage)."
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