SINGAPORE (Apr 15): CGS-CIMB Research is upgrading its call on Starhill Global REIT (SGREIT) to “add” from “hold” previously, but with a lower target price of 71 cents from 79 cents, as the research house prices in potential asset devaluation.

Year-to-date, SGREIT’s unit price has declined some 43% to trade at 46 cents yesterday. This indicates that the REIT is underperforming its peers which saw their share prices decline 31-34% over the same period.

Currently, the stock is trading at a price-to-book ratio of 0.52 times, which represents a decline of 42% from its peak in mid-2019, not too far from 58% decline during GFC when it dropped from 0.8 times book value in Mar 2008 to 0.34 time book value in Feb 2009.

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