Champion REIT 2778
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DJ MARKET TALK: Daiwa Trims Champion REIT Target 11.3% To HK$2.12
1008 [Dow Jones] STOCK CALL: Daiwa trims Champion REIT (2778.HK) target to HK$2.12 from HK$2.39 on larger degree of uncertainty beyond 2010; keeps at Hold. Notes stock trading at 68% discount to FY09E NAV, yielding 13%-16% for next three years, based on house's forecasts.
Says FY08 DPU down 5.9% on-year at HK$0.32, due to substantial dilution from share placement during Langham Place acquisition; but DPU in line with house's forecast of HK$0.314.
Says despite weaker rental market outlook, still expects REIT's 2009 on-year rental income growth +25% on-year on spot-passing catch-up at Citibank Plaza, full-year Langham Place contributions. Notes occupancy at 98% at both buildings, only 10% of GFA to be renewed this year. But tips larger challenge for rents, occupancy in 2010 when about 50% of GFA up for review. Stock up 6.5% at HK$1.79.
Source: Dow Jones Newswire
1008 [Dow Jones] STOCK CALL: Daiwa trims Champion REIT (2778.HK) target to HK$2.12 from HK$2.39 on larger degree of uncertainty beyond 2010; keeps at Hold. Notes stock trading at 68% discount to FY09E NAV, yielding 13%-16% for next three years, based on house's forecasts.
Says FY08 DPU down 5.9% on-year at HK$0.32, due to substantial dilution from share placement during Langham Place acquisition; but DPU in line with house's forecast of HK$0.314.
Says despite weaker rental market outlook, still expects REIT's 2009 on-year rental income growth +25% on-year on spot-passing catch-up at Citibank Plaza, full-year Langham Place contributions. Notes occupancy at 98% at both buildings, only 10% of GFA to be renewed this year. But tips larger challenge for rents, occupancy in 2010 when about 50% of GFA up for review. Stock up 6.5% at HK$1.79.
Source: Dow Jones Newswire