CIMB has downgraded UOL Group (U14.SG) to Neutral from Outperform, says Dow ones.

“Its stock performance could lag behind landlords with stronger asset quality. Older commercial buildings remain a key feature in its office exposure,” says CIMB.

CIMB notes office assets account for over 40% of UOL’s gross asset value vs 23% for residential properties.

The research house has cut target to $3.99 from $4.98, based on 20% discount to RNAV estimate vs parity previously.

Tips UOL’s hotel portfolio as bright spot, with revenue per available room +10% so far this year, occupancy rates +15%.

Shares off 0.5% at $3.80.