Management had previously highlighted that the potential impact of the cuts could translate to $3 million but that sum could be recovered through organic subscriber growth after 12 months.
Citi Research analyst Luis Hilado has kept his “buy” call on Netlink NBN Trust with an unchanged target price of $1.06 as he sees the counter as “due for a re-rating” if rates fall.
“With the re-rating of Singapore REITs (S-REITs) on the potential for interest rates to pivot in 2H2024, we reiterate our positive outlook on Netlink’s ability to sustain its healthy distribution per unit (DPU) and yield (above 6%) despite the recent interconnect rate cuts that impact its FY2025 revenues and profits,” Hilado writes in his Jan 2 report.
