In his report dated July 5, the analyst forecasted a distribution per unit (DPU) of 2.36 cents and 2.51 cents for FY2024 and FY2025, reflecting a forward yield of 9.6% and 10.3% respectively.
PhillipCapital analyst Darren Chan has initiated coverage on First REIT with a “buy” call and target price of 30 cents.
Chan’s dividend discount model (DDM) derived target is based on a cost of equity (COE) of 10.5% and a terminal growth rate of 2%.
