Friday, July 8, 2011

Daiwa ups K-Reit Asia to outperform, target $1.48

Stock Name: K-REIT
Company Name: K-REIT ASIA
Research House: DaiwaPrice Call: BUYTarget Price: 1.48



Daiwa has upgraded Singapore’s K-Reit Asia (KASA.SI) to outperform from hold and raised its target price to $1.48 from $1.30.

Daiwa said the discount on K-Reit Asia’s net asset value could narrow due to a recovery in the office sector and if it makes acquisitions that it improves its yields.

The brokerage also said it expects K-Reit to see higher rents for its major properties.
However, if K-Reit failed to acquire one of the prime grade-A office properties in Singapore from its sponsor Keppel Land (KLAN.SI), this would represent a downside risk to K-Reit’s share price.
At 11:08 a.m., K-Reit Asia shares were 0.75% higher at $1.345, and have fallen 4.6% since the start of the year.

 

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