AA REIT looks to unlock value via asset enhancement initiative (AEI), recently announcing that it will embark on two yield accretive AEIs later this year.
RHB Bank Singapore analyst Vijay Natarajan is keeping “buy” on AIMS APAC REIT (AA REIT) (SGX:O5RU
) at a reduced target price of $1.47 from $1.55, citing the REIT’s strong operational performance amongst S-REITs under his coverage with steady occupancy improvement and strong double digit rent reversions which are expected to continue.
In his Aug 21 report, the analyst notes that post recent pre-emptive fundraising, the REIT’s balance sheet remains “healthy” with a low gearing and high debt hedge with no refinancing needs until FY2025 ending March 2025. Valuation is attractive and is trading at a discount of around 10% to book value.
