AIMS APAC REIT

AIMS APAC REIT: Mixture of Inorganic and Organic Growth Warrant an Upgrade

Equity Bottom-Up
88 Views, 02 Nov 2021 10:18
EXECUTIVE SUMMARY

We raised our TP to S$1.63/unit to account for the recent Woolworths HQ acquisition, higher rental growth (driven by Logistics sector) and robust occupancies from existing portfolio, as well as a potential S$100m EFR in FY23E. We estimate DPU growth to stay flattish in FY22E and increase by +5.6% in FY23E (post-dilution effect). AAREIT currently trades at an attractive FY22E P/B of 1.07x (vs Industrial peers of 1.39x) and offers a total return of 20% (13.4% upside potential and 6.6% FY23E yield). Reiterate BUY.

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SCCM Asia Research
Research from SooChow CSSD Capital Markets (Asia)
SCCM Asia Research
Singapore & IndonesiaReal EstateEquity Bottom-UpThematic (Sector/Industry)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth compan... 

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