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Elite Commercial REIT First milestone acquisition
■ Milestone acquisition enlarges property portfolio valuation by c.67% to £531m. ■ Acquisition is DPU accretive and increases portfolio exposure to London. ■ Reiterate Add rating with a higher DDM-based TP of £0.781.
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Mapletree Logistics Trust Strong inorganic growth
■ 2Q/1HFY3/21 DPU was in line at 25%/49% of our FY21F forecast. ■ It announced S$1.09bn worth of acquisitions; more on the way. ■ Reiterate Hold with a higher TP of S$2.05.
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RHB |
UOB KAYHIAN |
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Keppel REIT (KREIT SP) Another Stable Quarter
NEUTRAL and SGD1.14 TP, 8% upside. Keppel REIT’s 3Q20 distributable income rose 4.6% YoY, aided by the recently completed 311 Spencer Street and lower interest expenses. Despite COVID-19, Management noted 3Q office leasing demand surpassed expectations with strong double-digit rent reversions (+15%). KREIT has been pivoting towards rental stability with recent Australian acquisitions offering long weighted average lease expiry. One concern, however, is the anticipated downsizing by financial institution tenants (36% of total) in the medium term.
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Ho Bee Land (HOBEE SP) Strong Recurring-Income Engine
HoBee trades at an undemanding 0.41x 2020F P/B, representing a 32% and 43% discount to that of Singapore developers and office REITs. The group has a S$4.6b commercial portfolio concentrated in quality office assets in gateway cities of London and Singapore (41% and 34% GAV) generating recurring earnings (99% of 2019 group gross profit). Share price catalysts include a potential REIT spin-off, share buyback and deployment of debt headroom. Re-Initiate coverage with BUY and target price of S$3.32, pegged at a 40% discount to RNAV.
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Check out our compilation of Target Prices
