Viva received a liquidation notice from Jackson International (JIPL), the facilities manager of its Jackson Square property acquired in Nov 2014. JIPL had committed to providing rental support until Nov 2019 as part of the purchase agreement, which will now be ineffective.
SINGAPORE (May 2): Maybank Kim Eng is maintaining its “buy” call on Viva Industrial Trust despite lowering its FY18 estimates to factor in vacancy risks at its Jackson Square property, given the REIT’s 8% dividend yield support and potential share price upside.
Maybank continues to see Viva’s growth outlook positively skewed towards its two large business park assets, on the back of affirmative rental reversion and post-AEI (asset enhancement initiative) gains.
