CGS-CIMB analyst Lock Mun Yee has reiterated their neutral stance on SURVF stock, giving a Hold rating on July 25.
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Lock Mun Yee has given his Hold rating due to a combination of factors influencing Suntec Real Estate Investment’s performance. The company’s Singapore operations have shown strong results, with a notable increase in distributable income and a healthy occupancy rate in the office segment. However, challenges in the overseas markets, particularly in Australia and the UK, are expected to limit near-term growth prospects.
The company’s leverage remains significant, and while financing costs have decreased slightly, the overall economic environment poses risks. The potential for upside is constrained by the challenging conditions in the overseas office markets, which may delay improvements in vacancy rates. Additionally, while Suntec Mall has seen positive rental reversions, future growth in this area is expected to be more modest. These factors collectively contribute to the Hold rating, as the outlook remains uncertain with both potential risks and limited immediate catalysts for significant upside.
In another report released on July 25, DBS also maintained a Hold rating on the stock with a S$1.15 price target.
SURVF’s price has also changed slightly for the past six months – from $0.884 to $0.919, which is a 3.96% increase.