RHB Research has maintained a “buy” call on Starhill Global REIT with a target price of 60 cents, down from its previous price of 63 cents.

Analyst Vijay Natarajan said while its outlook remains weak, its valuation of 0.6x P/BV (trading at -2SD, retail REITs average: 0.95x P/BV) and yield of about 8% implies that negatives have largely been priced in.

He noted FY20 distributable income for the REIT was down 20% y-o-y, before income retention. The final FY20 DPU includes income retention amounting to $7.7 million, while its capital allowance claim of $3.7 million was lower by 34% y-o-y. 

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