SPH REIT

SPH REIT: CIMB initiates at Add with TP $1.06. SPH REIT is a retail REIT with two quality and well located assets in Singapore (Paragon and Clementi Mall). The house believes the portfolio offers a unique combination of prime Orchard Road and suburban retail and an alternative play on rising medical tourism in S'pore. With an asset leverage of 26.9%, SPH REIT has debt headroom of ~$415m to 40% asset leverage for acquisitions. Its key pipeline asset include The Seletar Mall, which is slated for completion by end 2014.