DBS Group Research analysts Dale Lai, Rachel Tan and Derek Tan have re-initiated coverage on Cromwell European REIT (CEREIT) at “buy” with a target price of 60 Euro cents (95.9 cents), as they view the REIT as a play for the fast-growing logistics sector.

The target price is based on a discounted cash flow (DCF) model with a weighted average cost of capital (WACC) of 5.7%, and implies a target yield of 5.9% and a price-to-net asset value (P/NAV) multiple of 1.18 times.

CEREIT is the first Singapore REIT (S-REIT) with a diversified pan-European portfolio comprising office, industrial and logistics assets valued at around EUR2.3 billion ($3.68 billion).

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