CLSA has raised K-REIT Asia (K71U.SG) to Outperform from Underperform after trust’s 2Q earnings came in within expectations, announces A$145 million ($173.6 million) acquisition in Australia, says Dow Jones.

“K-REIT’s aggressive venture into overseas acquisitions with income support structure is a positive which will result in higher yield accretion in view of current low funding rates,” CLSA says in note.

Raises target to $1.30 from $1.10 after increasing FY11-12 DPU forecasts by 12%, 16% on Australian acquisition, partial retirement of short-term debt. Adds, “valuations of K-REIT’s assets are relatively conservative valued compared to other office REITs.” K-REIT Asia flat at $1.21; STI +0.2%.