CIMB Research raised its target price for Frasers Commercial Trust, which owns office assets in Asia, to $1.14 from $0.96 and maintained its outperform rating.
Units of FCT were flat at $0.935 but have gained 27% since the start of the year.
The broker raised its distribution per unit estimates for FCT to factor in the use of proceeds from the sale of its KeyPoint property to partially redeem its convertible perpetual preferred units.
FCT could unlock more value for its unitholders as the management is looking to exit the Japanese market, where its assets are worth $114 million in total, CIMB said.
CIMB said it expects FCT’s stock price to see more upside as it offered an attractive yield of 8.9% for the fiscal year ended September.