DBS analyst Dale Lai has maintained their bullish stance on O5RU stock, giving a Buy rating yesterday.
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Dale Lai has given his Buy rating due to a combination of factors that point to resilient performance and solid income visibility for AIMS APAC REIT. The REIT’s results for the first nine months of FY26 met his expectations, with distributions supported by higher revenues from strong rental reversions, rising occupancy, and lower property-related costs, supplemented by new income from a recent acquisition and asset enhancement initiatives. Leasing momentum has been robust, with a healthy volume of new and renewed leases signed at notable positive rental uplifts, particularly in the logistics/warehouse and hi-tech segments, underscoring firm demand for its assets. On the funding side, the REIT has managed to slightly lower its average borrowing costs while keeping leverage at a prudent level, even after financing the new acquisition.
Looking forward, Dale Lai expects earnings to grow steadily as positive rental reversions persist and occupancy remains high, with room to fill remaining vacancies. He also highlights multiple avenues for future growth, including targeted acquisitions, further asset enhancement to cater to higher-spec industrial requirements, and redevelopment potential in both Singapore and Australia. In his view, disciplined capital management, limited near-term refinancing pressures, and proactive handling of perpetual securities provide additional support for sustainable distributions. These combined strengths underpin his maintained Buy recommendation and unchanged target price of SGD 1.60 for AIMS APAC REIT.
Lai covers the Real Estate sector, focusing on stocks such as AIMS APAC REIT, Suntec Real Estate Investment, and Frasers Logistics & Commercial Trust. According to TipRanks, Lai has an average return of 4.0% and a 51.64% success rate on recommended stocks.
In another report released yesterday, TipRanks – PerPlexity also reiterated a Buy rating on the stock with a S$1.50 price target.