They also point to the disruptions of operations at the Citadines Covent Garden Hotel in the year due to asset enhancement initiatives (AEIs) which are due to be completed in August, the divestment of Citadines Mount Sophia and the 20 basis points (bps) increase in cost of debt to 3.20% for FY2025, as other factors for the change in target price.
Analysts at DBS Group Research, OCBC Investment Research have kept their “buy” calls on Capitaland Ascott Trust (CLAS) at a reduced target price and fair value respectively, while the analysts at Citi Research, PhilipCapital and CGS International have all kept their respective “buy” and “add” calls at unchanged target prices.
DBS analysts Geraldine Wong and Derek Tan have lowered their target price on the REIT to $1.15 from $1.30 previously, in anticipation of a reset in coupon rates for CLAS’s upcoming expiry of $150 million in perpetuals, from 3.88% per annum (p.a.) to 5.35% p.a. .
