Thursday, May 24, 2012

KLCC Property: Maintain Buy - A Solid Performance

Maintain BUY. KLCCP's 1Q12 core pretax profit was within our expectation (26% of our full-year forecast) but above consensus estimates (29%). We maintain our earnings forecasts and MYR4.35 target price (15% discount to MYR5.12 RNAV). The listing of IGB REIT at a potential 5-5.5% cap rate could set a new benchmark for KLCCP's valuation (with properties valued at cap rates of just 6-7%) and re-rate the stock.

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Source: Maybank Research - 24 May 2012

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