Tuesday, May 8, 2012

Pavilion REIT: Maintain Hold - A Good Start

Maintain HOLD but raising TP. PavREIT's 1Q12 net profit was in line, accounting for 28% of our and consensus full-year estimates. We reckon the recent run up in its share price was due to spillover effects of the potential REIT-ing of Kris Assets' retail malls. We maintain our earnings forecasts but raise our target price to MYR1.26. PavREIT currently trades at a 5.1% yield vs. CMMT's 5.8% and SunREIT's 6.1%.

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 Source: Maybank Research - 8 May 2012

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