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PR Newswire
08-06-2012, 12:05 PM
What we recommend, by Daiwa
We reaffirm our Buy (1) rating for SGREIT as we continue to see deep value, trading at a 29% discount (one of the widest in the S-REIT
sector) to its NAV of S$0.87, as at 31 March 2012.
We also see potential upside catalysts from stronger-thanexpected revenue growth post-AEI at WA and a favourable ruling (and rent increase on the rent review) on its Toshin lawsuit.
We maintain our target price of S$0.75, pegged to parity with our finite-life Gordon Growth Model valuation.
The major risk to our positive call would be any REIT-specific or external factor that undermines the resilience of its DPU.
We reaffirm our Buy (1) rating for SGREIT as we continue to see deep value, trading at a 29% discount (one of the widest in the S-REIT
sector) to its NAV of S$0.87, as at 31 March 2012.
We also see potential upside catalysts from stronger-thanexpected revenue growth post-AEI at WA and a favourable ruling (and rent increase on the rent review) on its Toshin lawsuit.
We maintain our target price of S$0.75, pegged to parity with our finite-life Gordon Growth Model valuation.
The major risk to our positive call would be any REIT-specific or external factor that undermines the resilience of its DPU.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.