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UBS downgrades Suntec REIT to 'sell' due to 'unattractive' risk-reward profile

Felicia Tan
Felicia Tan6/23/2022 09:04 AM GMT+08  • 3 min read
UBS downgrades Suntec REIT to 'sell' due to 'unattractive' risk-reward profile
The outperformance in Suntec REIT's unit price has more than priced in reopening tailwinds, says UBS analyst Michael Lim. Photo: Samuel Isaac Chua/The Edge Singapore
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UBS analyst Michael Lim has downgraded Suntec REIT to “sell” from “buy” as he sees the REIT as being most exposed to rising funding costs among the counters the brokerage covers.

Lim has also lowered his target price on Suntec REIT to $1.52 from $1.70 previously.

“Our dividend discount model (DDM)-based price target assumes 2.8% risk-free rate (from 2.1%) and 8% cost of equity,” Lim says in his June 20 report.

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