K-Reit

K-Reit: Credit Suisse downgrades to Neutral from Outperform after it outperformed the STI by 13% over the past 3 months and on increased market uncertainty and high gearing levels. But it continues to view K-Reit as the best proxy to Grade-A office space in S’pore, which this house is relatively more positive on. Notes 1H12 DPU of 3.84¢ was slightly above its expectations, with growth driven by the OFC acquisition in Dec, improved occupancy and lower interest cost. Against the backdrop of volatile global markets, its long portfolio WALE of 6.2 years should mitigate vacancy risks. CS raises its target to $1.22 from $1.19 after increasing its FY12-14 DPU forecasts by 1-4% to adjust for lower interest rates and higher portfolio occupancies. The stock is up 1.8% to $1.135.