Company Name: K-REIT ASIA
| Research House: CIMB | Price Call: BUY | Target Price: 1.11 |
The unit price of real estate investment trust K-REIT Asia rose 3.2% after the company's distribution per unit nearly doubled in the first quarter to $1.90 cents.
The strong results prompted CIMB Research to upgrade its rating to outperform from neutral and raise the target price to $1.11 per unit from $0.93.
K-REIT units rose to $0.97 in a weak broader market, with more than one million units traded, 1.3 times the average full-day volume traded over the past 30 days. Units in peer CapitaCommercial Trust were down 1.1%.
“Backed by attractive yields of 8% and improving office indicators, we think its risk-reward now favours a positioning for a bottom,” CIMB said in a report.
Out of 16 brokers tracking the stock, three have a buy, nine have a hold and 4 have a sell or strong sell rating. K-REIT units have risen nearly 17% this year.
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