DBS Group Research analysts Chung Wei Le and Derek Tan have initiated “buy” on iREIT Global with a target price of 76 cents.

To the analysts, there is value with distribution per unit (DPU) side from rental escalation from its German portfolio and room for improved occupancy rates for its Spanish portfolio.

“Assuming the acquisition of its Decathlon Portfolio will complete in end-October 2021, iREIT is currently trading at an FY2022 dividend yield of 7.0% and FY2021 price-to-net asset value (P/NAV) of 0.91 times. Our TP represents an FY2022 target yield of 6.0% and FY2021 P/NAV of 1.0 times,” they write in a May 6 report.

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