CGS-CIMB analyst Lock Mun Yee has reiterated their bullish stance on CGIUF stock, giving a Buy rating yesterday.
Lock Mun Yee has given his Buy rating due to a combination of factors that indicate a positive outlook for ESR-REIT. The REIT demonstrated strong financial performance in the first quarter of 2025, with significant year-on-year growth in revenue and net property income, primarily driven by recent acquisitions. These acquisitions, such as the ESR Yatomi Kisosaki Distribution Centre, have contributed notably to the revenue increase, showcasing the REIT’s strategic expansion efforts.
Additionally, ESR-REIT has maintained a stable operational performance, with a positive rental reversion and a slight dip in portfolio occupancy. The REIT’s financial management is also commendable, with a reduction in borrowing costs and a high percentage of fixed-rate borrowings, which provides stability against interest rate fluctuations. The attractive dividend yield further supports the Buy rating, as it offers a compelling return for investors. Potential catalysts for re-rating include accretive acquisitions, while risks involve exchange rate fluctuations and lease renewals.
According to TipRanks, Mun Yee is a 2-star analyst with an average return of -0.5% and a 40.21% success rate. Mun Yee covers the Real Estate sector, focusing on stocks such as Ascott Residence, ESR-REIT, and CapitaLand Mall.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$0.31 price target.