“We believe the market will start to appreciate LREIT’s enhanced value proposition to match its large-cap peers as it has a Singapore-centric strategy with an attractive pipeline of dominant commercial assets under right of first refusal; an added leg of resilience with growing suburban exposure and stable long-standing office leases; acquisition growth visibility; and reopening prospects in FY2023-FY2024,” the analysts add.
DBS Group Research analysts Geraldine Wong and Derek Tan have kept their “buy” call on LendLease Global Commercial REIT (LREIT), describing it as a “hidden gem” with the potential to emerge as a strong contender within the retail Singapore REIT space.
In their Nov 8 report, the analysts point out that LREIT continues to trade at a yield discount of 80-110 basis points to its peers within the large-cap retail space. They believe that this is unwarranted and should compress over time.
