Perennial China Retail Trust

Perennial China Retail Trust: CIMB maintain O/p with $0.59 TP. Recommend investors look past the rough patch. Recent sell-down has lifted dividend yields to attractive levels of 8-10% till 2014. House believe negatives have been priced in. While teething difficulties are here to stay, near-term weakness is mitigated by growth opportunities on the back of a more robust trust structure. Long term prospects remain attractive when revaluation gains kick in to boost NAV growth. TP is based at 35% discount to RNAV). Strategic monetisation of assets and stronger-than-expected leasing progress are potential catalysts.