CIMB keeps K-REIT (K71U.SG) at Underperform with $1.26 target; says 3Q10 DPU of 1.69 cents meets expectations, forming 25% of full-year forecast, 9-month DPU of 4.65 cents, meets 70% forecast, “in line considering backend-loaded contributions expected from Australian assets acquired in the year”, says Dow Jones.

House fine-tunes FY10-FY12 DPU estimates by minus 1.0% to +1.0%, sees de-rating catalysts from limited accretion from recent asset swap, unattractive FY10 DPU yields of 4.8% vs Suntec REIT’s (T82U.SG) 6.5%, CapitaCommercial Trusts’ (C61U.SG) 5.2%. Adds, K-REIT’s FY11 DPU estimate of 6.68 cents for enlarged portfolio lower than house’s 7.23 cents forecast due to lower rental, occupancy assumptions for local portfolio. 

 

Shares down 2.2% at $1.34.