[ET Net News Agency, 28 July 2020] DBS Group Research lifted its target price for Link
REIT (00823) to HK$73.35 from HK$73 and maintained its "buy" rating.
The research house said Link's acquisition of "The Cabot" in London for GBP380m marks
its second overseas property deal outside Hong Kong and China. Following this acquisition,
overseas assets will account for 3.4% of the total property portfolio value.
DBS raised its DPU (distribution per unit) estimate for FY2021 by 0.7% and FY2022 by
1.4%. Link offers a distribution yield of 4.9% for FY2021 and 5.2% for FY2022. This
translates into a yield spread of 4.4-4.7% for FY21-22. It said that valuation is
attractive from the historical perspective. (KL)