UOB Kay Hian analyst Jonathan Koh has maintained their bullish stance on DCRU stock, giving a Buy rating yesterday.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Jonathan Koh has given his Buy rating due to a combination of factors including Digital Core REIT’s strong leasing activity and positive financial performance. The REIT signed new and renewal leases that account for more than 90% of its portfolio, resulting in a favorable rental reversion of 4.3% in 2024. This trend is expected to continue, with management forecasting an increase to double-digit rental reversions in 2025.
Additionally, the REIT recognized a significant revaluation gain and offers an attractive distribution yield of 6.7% for 2025. The efforts to backfill vacant spaces in key data centers, like those in Toronto and Los Angeles, have improved occupancy rates and generated higher rental incomes. These strategic moves, coupled with the purchase of units at a discount to NAV, contribute to Koh’s optimistic outlook and Buy rating for Digital Core REIT.
According to TipRanks, Koh is a 3-star analyst with an average return of 1.9% and a 47.50% success rate. Koh covers the Real Estate sector, focusing on stocks such as Mapletree Logistics, Frasers Logistics & Commercial Trust, and Keppel REIT.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a $0.72 price target.