Starhill REIT: Macquarie upgrade to O/p from Neutral, TP $0.67, citing undemanding valuations.
Largely a prime retail play with 68% of assets in SG, its current yield of 7.6% is attractive relative to its 5-year average trading yield of 6.8%. Believe the mkt is pricing in a 38% fall in Orchard Road retail rents at the current share price, which is too excessive.
Catalyst: Acquisitions and higher-than-expected reversion retail rents
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