“We believe this sell-down is unjustified considering CEREIT’s strong operational performance track record, highly hedged debt position, and more importantly, ability to divest assets despite challenging a market,” writes Natarajan.
RHB Bank Singapore analyst Vijay Natarajan is keeping “buy” on Cromwell European REIT (CEREIT) (SGX:CW8U
) at an unchanged target price of EUR2.15 ($3.13), despite the REIT’s sharp decline in its unit price of over 12% in the past month. The decline in the prices of CEREIT’s units came amidst broader selldowns across Singapore REITs (S-REITs) with overseas properties.
Natarajan’s target price includes a 4% environmental, social and governance (ESG) premium based on RHB’s in-house methodology.
