KREIT: Morgan Stanley initiated with Underweight, based on expectations for dividends to decline in 2015-17E.
Office supply fundamentals in Singapore are weakening and current stock price is pricing in sustained growth in spot rents, which is unsustainable and unrealistic. Office rents are expected to decline sequentially in six months’ time in view of oncoming supply, as such weighing on office REITs as a whole.
TP $1.10
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