DBS Group Research analysts Geraldine Wong and Derek Tan are keeping their “buy” call on Frasers Hospitality Trust (FHT) as they view the REIT as “attractive” given its current price at 0.9 times net asset value (NAV), which is below replacement costs.

“The current price, which is 30% below its pre-Covid level, is at an attractive level for an overlooked stock. Its prospective FY2022 yield of 8.0% is also appealing,” they write in a May 3 report.

The REIT is also a “laggard no more” as its price is catching up with its peers, supported by a robust compound annual growth rate (CAGR) of over 70% in distributions per unit (DPUs) over the medium term.

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