Thursday, June 4, 2015

Starhill Global

Starhill Global: Daiwa cited that Starhill's recent acquisition of Myer Centre Adelaide (MCA) could be a transformational deal.

House believes Starhill's acquisition of MCA could help to allay investor concerns about management’s capabilities. Moreover, it believes that Starhill is probably just one more successful deal away from a major positive rerating by the
market.

The new property has good location and a significant scope to improve its net property income (NPI) through tenant repositioning and AEIs. A low-hanging fruit is the 114,000 sq ft of vacant space on levels 4 and 5.

Daiwa reiterates its Outperform rating with TP at $0.96, citing attractive features of value, trading at a discount to book and a relatively attractive FY16 DPU yield of 6%.

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