“Certainly, Dasin is expected to improve operationally in FY2021 boosted by potential savings from rental rebates and better occupancies. Still, the trust’s valuation appears rich with a 6.1% FY2021 yield. Upside may hence be capped in the near term especially if we compare to peers including CapitaLand China Trust and Sasseur REIT which are trading at FY2021 yields of 6.7% and 7.9% respectively,” adds Woon
DBS Group Research is downgrading its call on Dasin Retail Trust to “hold” from “buy” previously, with a lower target price of 74 cents from 86 cents.
In a March 3 report, according to lead analyst Woon Bing Yong, Dasin is currently trading richly at an FY2021 yield of about 6% which he believes may limit any upside in the near term. This compares to a peer average FY2021 yield of 7.4%.
