CGS-CIMB Research has initiated coverage on Lendlease Global Commercial REIT (LREIT) with a “buy” recommendation and a target price of 85.4 cents.

Analysts Eing Kar Mei and Darren Ong say they expect footfall for the REIT to “gradually recover” after factoring in the potential impact of Covid-19 in its FY20 results.

“We believe LREIT is a domestic recovery proxy for Covid-19 with upside from acquisitions and asset enhancement initiatives (AEIs),” they say, adding that they see limited downside risks to their estimated dividend yield of 6.6% with the REIT’s 100% committed dividend payout in FY21F.

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