PhillipCapital’s research team has upgraded Dasin Retail Trust to “buy” from “accumulate” as it expects a rise in its share price from the population growth in the Greater Bay Area, greater acquisitions and rental uplift following its AEI.

The team has, however, lowered its target price to 90 cents from 91 cents. It has also lowered its distribution per unit (DPU) estimates for FY2020/FY2021e by 4.0%/1.8% to factor in an enlarged share base following its recent share offering.

“Dasin will have to grow its DPUs to offset an increasing unit base, in order to prevent deterioration of its DPU yields. The percentage of units under distribution waiver stands at 25% and 11% for FY2020 and FY2021 respectively. Dasin acquired three assets from its sponsor in the last two years and we expect it to tap its right of first refusal (ROFR) pipeline again to keep DPU yields stable,” it says.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook