Maybank Investment Bank sees enhanced earnings for Sentral REIT from FY2024f due to the acquisition of Menara CelcomDigi.
In a note today, Hong Leong Investment Bank Research was bullish on the acquisition of Menara CelcomDigi, citing the enduring single tenancy arrangement and a favourable 8% rental yield. As a result, HLIB adjusted its target price to 75 sen, down from 84 sen previously, while maintaining its “hold” recommendation.In Q2 FY2023, Sentral REIT recorded a core net profit of RM17.6 million, marking a slight 0.2% decline compared to the previous quarter and a 4.4% decrease year-on-year .
It anticipates that due to fierce competition within the office market, rental rates for office spaces in the Klang Valley are expected to continue experiencing downward pressure. As a result, the research house maintained its “buy” recommendation and a TP of 91 sen, calculated using the dividend-discount model .