STARHILL GLOBAL REIT
P40.SI
Starhill Global REIT: Divestment of a Japanese Asset
- Starhill announced its divestment of a Japanese mall (Roppongi Terzo) for a price consideration of JPY2,500m, which translates to an estimate cap rate of 4.4%. Though the asset constitutes a mere 0.9% of its overall portfolio, we view this initiative as a positive one as it is part of the REIT’s strategy to streamline its portfolio by divesting its nonperforming assets.
- In view that the cap rate for a Japanese mall averages from 4 to 5%, we think that divesting at a cap rate of 4.4%, the pricing of the divestment is reasonable.
- We continue to positive on SGREIT as it continues to be committed to a disciplined capital recycling strategy by focusing its strength in both Singapore and Australia.
- We maintain our BUY recommendation at a TP of SGD0.93.
Ivan Looi
RHB Research
|
Ong Kian Lin
RHB Research
|
http://www.rhbinvest.com.sg/
2016-01-08
RHB Research
SGX Stock
Analyst Report
0.93
Same
0.93
