OCBC initiates coverage on First REIT (AW9U.SG) with a Buy recommendation and $0.84 fair value estimate.
The research house says FREIT "is well-positioned to capitalise on the growing demand for higher quality healthcare from the middle-class in Indonesia as well as increasing eldercare needs in Singapore."
OCBC notes FREIT has completed acquisitions of two Indonesian hospitals recently "which we view as yield-accretive in nature."
It adds, FREIT would benefit largely from the support of its "strong and committed" sponsor PT Lippo Karawaci -- Indonesia's largest listed property company.
The house also likes the management's strong execution capabilities and FREIT's attractive distribution yield, "which is well above the S-REIT average."
OCBC's $0.84 fair value yields potential upside of 13.7% and total return of 22.6%.
No comments:
Post a Comment