“AA REIT has delivered on acquisitions to drive distribution per unit (DPU) growth of around 6% in the past year and we expect the growth trajectory to continue,” says Tan and Lai. “However, with gearing already at optimal levels, we assume further growth will require some equity fundraising.”
DBS Group Research analysts Dale Lai and Derek Tan have kept a “buy” rating on AIMS APAC REIT (AA REIT) with a lowered target price of $1.53 from $1.55.
The analysts’ new target price implies a target yield of 6.2% FY2023 and P/NAV of 1.1x.
