Starhill Global: Kim Eng initiates coverage with Buy call and TP of $0.80 based on DDM. Highlight that Starhill owns 13 prime commercial properties in stable, high-growth markets in the Asia Pacific, with retail rental making up 87% of group revenue in 3Q10, expecting DPU growth to be bolstered by medium and long-term leases that provide income stability and rental upside potential, as well as acquisition opportunities…
Note that with a clear target to double asset size and the backing of a strong and committed sponsor, Starhill is poised for a new beginning. At 0.7x FY10 P/B and 6.8% FY11F yield, the stock is deeply undervalued and offers a yield spread as high as 160bps over the yield of some of its retail peers.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment