A-REIT

A-REIT : is down 3.4% at $2.56, continuing to hover above the $2.54/sh price of the trust's private placement of 160m new units, raising $406.4m, mostly earmarked to purchase two properties. The placement's pricing was near the upper end of the $2.50-S$2.55 pricing band, with the number of shares sold raised from the initial 140 m planned due to strong demand. CIMB notes the properties purchased are priced attractively; adds the placement also appears necessary and AREIT's good share price ytd has just offered it an opportunity. Estimates blended 6.3%-6.4% yields from the Science Park II and the Kallang Avenue properties, although it expects near-term dilution until the Kallang property is completed. Forecasts flat FY14 DPU, with FY15 DPU growth of 9.5%. CIMB advises using share price weakness as an entry opportunity. Raises TP to $2.79 from $2.68, keeping an Outperform call.