While the manager of FEHT mulls its options, CGS-CIMB Research analysts Natalie Ong and Lock Mun Yee are keeping “add” on the REIT but with a lower target price of 75 cents, down from 77 cents previously.
With gearing at just 31.3% as at end-2023, Far East Hospitality Trust (SGX:Q5T
) (FEHT) is looking for acquisitions this year, likely in Japan or Singapore. At the release of the REIT’s results for FY2023 ended Dec 31, 2023, the manager signalled that it continues to look for acquisitions in Japan given the positive yield spread, with asset yields around 4%.
For Singapore, however, the REIT manager says it will wait for interest rates to moderate, likely in 2H2024, before revisiting acquisitions here.
