MIDF raises target price on Axis REIT on improved growth prospects

KUALA LUMPUR: MIDF Research has revised higher its target price for Axis Real Estate Investment Trust (REIT) on the back of better growth prospect for its industrial asset portfolio.

The research house raised its target price to RM2.04 from RM1.98 as it increased the terminal growth rate to 2% from 1.8% in its dividend discount model.

"Outlook for Axis REIT remains stable as its portfolio of industrial assets are relatively shielded from Covid-19 pandemic," it said in a note, while reiterating its "buy" call.

On a recent development, MIDF expects limited earnings impact from Axis REIT's acquisition of an industrial property in Pasir Gudang, Johor, from Xin Hwa Trading & Transport Sdn Bhd for RM75mil.

It maintained its earnings forecast for FY21/22 with earnings impact anticipated to come under 1%.

With the proposed acquisition funded by existing bank borrowing, MIDF said the gearing of Axis REIT is expected to climb to 0.29x from 0.37x post the asset acquisition.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

MIDF Research , Axis REIT


Next In Business News

Cypark proposes RM108mil private placement to fund solar project
Sirim offers face mask makers rebate for testing, certification services
Palm falls more than 4% tracking weak US soyoil
Ringgit ends slightly higher versus US dollar
Crude palm oil prices slump
Poultry firm CAB Cakaran halts operations at one factory due to Covid-19
Bukalapak aiming for up to US$800mil in IPO -sources
Euro unaware why shares plunged
Blue chips extend losses as glove makers, plantations slump
Dutch Lady Milk Industries appoints Ramjeet Kaur as managing director

Stories You'll Enjoy