Friday, June 15, 2012

Axis REIT: Downgrade to Hold - Adding On To Its Portfolio

Neutral for now, long-term positive. Whilst we are positive over the medium-to long-term outlook of AXRB’s latest acquisition in Petaling Jaya given the potential for redevelopment, the earnings impact is small for now (pre-redevelopment). The trust has also proposed to undertake a placement of up to 90.8m new units. We raise our earnings forecasts by 0.5-5.4%, and DCF-based TP to MYR2.80 (+5sen). With expected total return of less than 15%, we downgrade AXRB to HOLD.

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Source: Maybank Research - 15 June 2012

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