AmInvestment Bank maintains ‘buy’ on SReit, unchanged value of RM2.16

KUALA LUMPUR, AmInvestment Bank Bhd has maintained a ‘buy’ recommendation on Sunway Real Estate Investment Trust (SReit) with an unchanged value of RM2.16 based on a target yield of five per cent.

In a research note, it said SReit has a strong brand name and market position in the shopping complex segment which has posted an average occupancy rate of more than 90 per cent over the past three years.

“We expect the outlook for retail properties, especially shopping malls, to remain stable in the short to medium term,” it said.

SReit’s first-quarter financial year 2020 (1QFY2020) distributable income of RM73.7 million (an increase of 1.0 per cent year-on-year) came in within expectation at 24 per cent of its and consensus’ full-year estimates.

Net property income (NPI) increased by 7.7 per cent to RM119.1 million, in line with revenue growth.

1QFY2020 revenue grew by 8.1 per cent y-o-y to RM155.4 million mainly attributable to the contribution from the newly acquired Sunway University and College campus and better performance across all segments, especially hotels.

As of 10.25 am, SReit shares improved six sen to RM1.89 with 481,700 shares changed hands.

Source: BERNAMA (News Agency)