KUALA LUMPUR: Affin Hwang Research has maintained its Buy rating on IGB Reit with a target price of RM1.38 as it rolled forward its valuation window to 2015.
In a note on Tuesday, the research house said IGB Reit will continue sustaining based on its key strengths like stable occupancy rates, strong visitor and retailer attraction – MVM and GM are key suburban shopping destinations.
" Although the upcoming implementation of the GST starting Apr 15 may put a drag on retail pending between 2Q15 and 3Q15, consumption may potentially normalizes thereafter, as the lower petrol pump prices (as a result of falling crude oil prices globally) have the potential to stimulate consumption," it said.
It added that IGB's 2014 realized net profit of RM232.6mil was marginally above expectations.
The key income driver for 2014 was gross rental income growth of 7.5% on-year.
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