In his report dated Sept 9, the analyst notes that CEREIT has high quality assets that include a well-diversified mix of tenants, providing a strong base for the firm’s growth. CEREIT’s portfolio achieved a positive 5.2% rent reversion for 1HFY2024 ended June 30, showing increased rental growth. CEREIT’s top 10 tenants contribute less than 23% of the total headline rent and no one industry or trade sector represents more than 17% of the total portfolio.
OCBC Investment Research (OIR) analyst Donovan Tan has initiated coverage on Cromwell European REIT (CEREIT) with a “buy” call. The analyst has also given the REIT a fair value estimate of EUR1.87 ($2.70), based on a cost of equity (COE) assumption of 8.65% and terminal growth rate of 1.5%.
The fair value estimate represents an implied price-to-book (P/B) ratio of 0.83 times, based on the dividend discount model (DDM) methodology.
