Lendlease Global Commercial REIT, the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Lock Mun Yee from CGS-CIMB reiterated a Buy rating on the stock and has a S$0.67 price target.
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Lock Mun Yee’s rating is based on several strategic factors that highlight the potential of Lendlease Global Commercial REIT. The REIT has shown a commendable increase in revenue and net property income, driven by the strong performance of its Singapore properties. Additionally, the REIT’s financial flexibility is expected to improve following the proposed sale of the Jem office, which is part of its capital recycling strategy. This divestment is anticipated to reduce the REIT’s gearing significantly, thereby strengthening its balance sheet.
Moreover, the REIT has maintained a robust rental reversion rate and high occupancy levels, which are positive indicators of its operational efficiency. The completion of a multifunctional event space adjacent to 313 @Somerset is also on track, promising further growth opportunities. Despite a slight dip in distributable income per unit due to the divestment, the overall dividend yield remains attractive. These factors, combined with potential growth opportunities and improved credit metrics, underpin Lock Mun Yee’s Buy rating for Lendlease Global Commercial REIT.
In another report released on August 6, DBS also maintained a Buy rating on the stock with a S$0.75 price target.
JYEU’s price has also changed slightly for the past six months – from S$0.530 to S$0.575, which is a 8.49% increase.