Target S$1.11
K-REIT braved headwinds to lease out more than 50,000 sf of space at Ocean Financial Tower and Prudential Tower in 1Q12. Backed by attractive yields of 8% and improving office indicators, we think its risk-reward now favours a positioning for a bottom. 1Q12 DPU was slightly above our estimate and consensus on lower interest costs, at 27% of FY12. We raise DPU by 2-4% and DDM target price (disc. rate: 8.2%) on lower interest costs and higher occupancy. Upgrade to Outperform from Neutral.
No comments:
Post a Comment