Liu’s May 6 note comes after Elite Commercial REIT reported a distribution per unit (DPU) of 0.67 pence for the 1QFY2024, 21.2% lower y-o-y due to an enlarged equity base from the preferential offering completed on Jan 18.
There is valuation upside from Elite Commercial REIT’s expanded investment mandate, which now includes the living sector. Two vacant assets are on track to be redeveloped into student accommodation and a data centre, which will unlock their value by uplifting rental and valuation by some 30% to 40%.
For now, however, PhillipCapital Research analyst Liu Miaomiao has lowered her target price to 32 British pence (54.29 cents) from 34 pence previously, while staying “buy” on the REIT.
