Kenanga research maintains its “overweight” call on the REIT sector and its preferred picks are Axis REIT and KLCC REIT in light of their rock-stable earnings.
The research unit also notes that the office and industrial segments under its coverage have been fairly stable, as businesses were able to operate effectively on a work-from-home basis without significant disruptions to operations. The research firm maintains its “overweight” call on the REIT sector and its preferred picks are Axis REIT and KLCC REIT in light of their rock-stable earnings.
“Moreover, the average rental rates in KL Sentral are attractive at RM6.46 per sq ft,” says the research unit. Also, the research unit says Sentral REIT’s high dividend yields of 8% to 9% for 2021 to 2023 are attractive in the current market. The research unit maintains a “buy” call on Al-’Aqar REIT with unchanged target price of RM1.40, based on DDM.
The research unit also notes that occupancy rates at anchor malls of retail REITs under its coverage remain healthy at above 90%.