Friday, May 4, 2012

Quill Capita Trust: Maintain Hold - Organically-driven growth

No surprises. QCT's 3M12 results were in line, accounting for 21-23% of our and consensus full-year estimates. As expected, no dividend was declared. No change to our earnings forecasts and MYR1.10 TP. Despite its higher-than-average yield of 7.7% (gross) (vs. industry's 6.8%), we maintain our Hold rating on QCT as we see high occupancy risk in office REITs given the current oversupply situation.

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Source: Maybank Research - 4 May 2012

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