The challenge with REITs is not the current yield. It it how the REIT is going to grow over the next few years. If they are thinking of issuing more units, then it will dilute whatever earnings they have.
Hong Leong Investment Bank (HLIB) Research has initiated coverage on Hektar REIT at 67 sen with a “Hold” rating and target price (TP) of 60 sen based on FY2024F DPU at a targeted yield of 11%. In a note on Monday (June 26), the research said it projects Hektar’s earnings to grow by 9.5% for FY2023F, 8.2% for FY2024F and 3.5% for FY2025F — mainly driven by expansion in occupancy rate offsetting the slight negative rental reversion.
I think Hektar is not going to issue more units for the time being after they had exercised IDRP early this year... so doesn't need to worry much about the dilution of EPS for the next few quarters
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
MrAction
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Posted by MrAction > 2023-08-09 16:16 | Report Abuse
Retail growth is rising, upside potential of retail marketing is hopeful in 2023, buy more Hektar REITS