The new target price represents REIT’s lowered terminal growth to 2.2% from 2.6%. Its cost of equity was raised to 7.0% from 6.75% previously.
UOB Kay Hian analyst Jonathan Koh has kept his “buy” call on Mapletree Commercial Trust (MCT) with a lower target price of $2.24 from $2.36 previously.
"The lower target price reflects the transition from a pure play for Singapore to a geographically diversified mix of real estate, comprising both developed and developing countries," says Koh.
