KUALA LUMPUR (Feb 10): Analysts have cut the target price of Sunway Real Estate Investment Trust (REIT) as they anticipate the group s retail segment to remain weak in the near term.
Hong Leong Investment Bank (HLIB) Research reiterated its hold call on the group but lowered its target price to RM1.48 (from RM1.65 previously) based on the financial year 2022 ending June 30 (FY22) dividend per unit on targeted yield of 5.1%, derived from two-year historical average yield spread between Sunway REIT and 10-year MGS.
HLIB Research analyst Farah Diyana Kamaludin said the research house expects Sunway REIT’s hotel segment to remain weak in the near term following bleak hospitality industry along with temporary closure of Sunway Resort Hotel due to refurbishment since July 2020.