DBS Group cut its target price for Sunlight REIT (00435) to HK$5.9 from HK$6.05 and maintained its "buy" rating.
The research house said Sunlight offers distribution yields of 5.2-5.3% for FY2020-21.
DBS said its forecast revenue and distribution income are slightly lower than market estimates partly because it has factored in a minor impact on rental on Sheung Shui Centre Shopping Arcade from the prolonged protests.
DBS noted that the overall portfolio occupancy inched up to 95.9% in September from June's 95.3%, led by improved occupancy at Strand 50 as a result of the partial hand-over of the new co-working space. It added that improving occupancy and solid reversionary growth should sustain Sunlight's revenue growth in the years ahead.
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