Suntec REIT

Suntec REIT: Stanchart calls for a take profit, downgrading the stock to an Underperform rating and TP of $1.89, with a potential 15% downside risk, if Suntec REIT mean reverts to similar 2017E EPU yields as CapitaCommerical Trust and Keppel REIT. Fundamentally, prime office rental growth is expected to slow to 8% in 2015, from 15% in 2014, given that the growth this year was driven more by a lack of supply than strong demand. House also cites that Suntec REIT could still be an attractive privatisation candidate, but there's limited upside given its fairly valued P/B of 0.95x. Stanchart estimates up to $2.06/unit if any offer arises, compared to its RNAV estimate of $2.50/unit.